Novartis has acquired Melbourne, Australia-based Spinifex Pharmaceuticals for $200 million plus undisclosed clinical development and regulatory milestone payments.

The acquisition is centered on Spinifex’s lead candidate EMA401, a novel angiotensin II type 2 (AT2) receptor antagonist, being developed as a potential first-in-class oral treatment for chronic pain, particularly neuropathic pain, without central nervous system (CNS) side effects.

Positive results from Spinifex’s Phase 2 clinical trial of EMA401 in PHN, a painful condition that develops in some people following herpes zoster (shingles), have been published. Novartis will continue the development of EMA401 and is planning to initiate Phase 2b clinical trials in patients with PHN or PDN. Novartis also intends to build on these two key indications and pursue a broad peripheral neuropathic pain (PNP) label for EMA401.

The transaction is expected to close in H2 2015, subject to the receipt of clearance under the Hart-Scott-Rodino Act and customary closing conditions.