Corthera to be purchased by Novartis in $120 Million Deal

On Wednesday, the giant Swiss drug manufacturer Novartis confirmed that it is all set to purchase the American biopharmaceutical firm Corthera Inc, in a deal which will cost the former a whopping $120 Million, and give it the right to develop a new medicine to fight against heart failure.

The acquisition, which is still subject to approval from all designated regulatory authorities, is expected to reach a closure by the first quarter of 2010, as has been confirmed by Novartis in an official statement released.

The privately owned San Francisco based Corthera has been in the process of developing Relaxin, a potential treatment for patients who suffer from "acute decompensated heart failure" which is in the third trial phase.

Novartis has shared that it would be responsible for "completing the development of Relaxin", and is looking to "submit requests to put it on the market in the United States and Europe in 2013".

Depending upon when the experimental drug reaches certain clinical milestones, gains all necessary approvals and how well it does once marketed, Corthera's current shareholders stand a potential to receive additional payments of up-to $500 Million.