On January 19 2010 Chiasmahas granted Novartis an option to obtain exclusive worldwide rights to develop and commercialise its Transient Permeability Enhancer (TPE) technology. The technology is for use with certain related small molecule products either in development or currently marketed by Novartis.
Novartis has also invested several million dollars in Chiasma via MPM Capital.
The two companies have initiated a feasibility programme funded by Novartis. Should Novartis exercise the option, it would assume the global clinical development, manufacturing, regulatory submissions and commercialization of the products containing the TPE technology.
Chiasma would receive milestone payments upon the option exercise and upon successful completion of certain development and regulatory milestones. In addition, Chiasma would be eligible to receive a percentage of any incremental profits generated as a result of the incorporation of the TPE technology into these Novartis products. Additional terms were not disclosed.