Pharma BD Deal Intelligence

Novartis AG / Ziarco Group Limited

2016 · Acquisition/Merger · $420M · Complete

WRONG BY 63 POINTS

Novartis wrote off more than the entire $420M purchase price after its lead eczema asset flunked a Phase IIb trial in 2020 — a near-total value destruction.

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The coverage arc

Dec 16, 2016 BioSpace (citing Endpoints News) Bullish

"The object of (Novartis') affection is Ziarco, a 5-year-old upstart that has gathered positive midstage data together for ZPL389" - trade coverage framing the…

Dec 19, 2016 PMLiVE Neutral

PMLiVE reports Novartis added an oral eczema drug via Ziarco, noting financial terms were undisclosed and the asset competes in a crowded atopic dermatitis…

Oct 01, 2018 FierceBiotech Bearish

FierceBiotech reported Novartis took a $485M impairment hit when it axed ZPL-389/adriforant from its pipeline after the H4 antagonist failed to meet…

Source summaries from our enrichment pipeline; follow links for originals.

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Novartis acquired UK-based Ziarco Group, a dermatology biotech, for undisclosed financial terms. Lead asset ZPL-389, a once-daily oral H4 receptor antagonist in development for atopic dermatitis. Strategic addition to Novartis's dermatology pipeline alongside Cosentyx (anti-IL-17A).

Did it work? Outcome assessment

Novartis wrote off more than the entire $420M purchase price after its lead eczema asset flunked a Phase IIb trial in 2020 — a near-total value destruction.

Strategic verdict
Failed to Achieve
Financial impact
Impaired/Written Down
Pipeline outcome
Assets Terminated

Key facts

Related deals — scored

DealYearValueOutcome
Novartis AG / Ziarco Group Limited (this deal)2016$420M12
Novartis AG / Advanced Accelerator Applications S.A.2017$3.9B98
Novartis AG / Endocyte, Inc.2018$2.1B96
Novartis AG / Lek Pharmaceuticals d.d.2002$876M88
Novartis AG / GlaxoSmithKline plc2014$16.0B81
Novartis AG / PTC Therapeutics Inc.2024$2.9B80
Novartis AG / Chinook Therapeutics Inc.2023$3.5B78

Compare all 7 side-by-side →

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