Investing.com -- Regulus (NASDAQ: RGLS ) Therapeutics shares skyrocketed today, posting a 133.5% gain following the announcement of an acquisition agreement with pharmaceutical giant Novartis (SIX: NOVN ). The San Diego-based biopharmaceutical company, which specializes in microRNA therapeutics for autosomal dominant polycystic kidney disease (ADPKD), has agreed to a deal that includes an upfront payment of $0.8 billion with the potential for an additional $0.9 billion upon achieving a future regulatory milestone.

The transaction, which is expected to close in the second half of 2025, will see Novartis commence a tender offer to purchase all outstanding shares of Regulus at $7 per share in cash at closing. Shareholders will also receive a contingent value right (CVR) with a potential cash value of up to $7 per share upon reaching a regulatory milestone. The deal has been unanimously approved by the Boards of Directors of both companies.

Regulus’ lead asset, farabursen, is a novel oligonucleotide targeting miR-17, which recently completed a Phase 1b multiple-ascending dose clinical trial. The promising trial data showed a consistent impact on urinary polycystin and height-adjusted total kidney volume, indicating potential clinical efficacy and safety in treating ADPKD. Novartis’ President of Development and Chief Medical Officer, Shreeram Aradhye, emphasized the limited current treatment options for ADPKD and the potential of farabursen as a first-in-class medicine that could offer enhanced efficacy, tolerability, and safety.

The strategic acquisition aligns with Novartis’ focus on therapeutic areas and leverages its expertise in renal disease. Until the transaction’s closure, Novartis and Regulus will continue to operate independently. The completion of the deal is subject to customary closing conditions, including the tender of a majority of Regulus’ outstanding common stock and regulatory approvals.

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