Pharma BD Deal Intelligence
Novartis's $420M bet on Ziarco's eczema drug ZPL389 collapsed into total loss when the Phase IIb trial failed in 2020, triggering a $485M impairment charge that exceeded the entire purchase price. The deal produced no approved product and stands as a clear-cut bust.
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.
Full analysis, sources & comparables →"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…
PMLiVE reports Novartis added an oral eczema drug via Ziarco, noting financial terms were undisclosed and the asset competes in a crowded atopic dermatitis…
FierceBiotech reported Novartis took a $485M impairment hit when it axed ZPL-389/adriforant from its pipeline after the H4 antagonist failed to meet…
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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).
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.
Assessment window: 5yr post-close.
Atopic dermatitis (AD) is a chronic, relapsing, intensely pruritic inflammatory skin disease driven by Th2-skewed immune dysregulation, epidermal barrier dysfunction, and microbial dysbiosis. Itch and sleep disruption produce a high quality-of-life burden, and moderate-to-severe disease historically had limited systemic options beyond topical steroids, calcineurin inhibitors, phototherapy, and off-label cyclosporine.
When Novartis acquired Ziarco in December 2016, the AD landscape was on the verge of transformation. Sanofi/Regeneron's Dupixent (dupilumab), an anti-IL-4Ra biologic, was within months of FDA approval (March 2017) and would redefine moderate-to-severe AD as a biologic-led market. Pfizer/Anacor's Eucrisa (crisaborole, topical PDE4) had been approved a week earlier in December 2016. The pipeline included LEO/Almirall's tralokinumab (anti-IL-13), AbbVie's upadacitinib and Pfizer's abrocitinib (oral JAK1 inhibitors), and Eli Lilly's lebrikizumab. Ziarco's ZPL-389/adriforant (later renamed) was a once-daily oral H4 receptor antagonist that beat placebo on EASI in an 8-week, 98-patient Phase 2a but missed the itch-related endpoint. Bloomberg sources estimated the Novartis acquisition could be worth up to $1B with milestones. The bet failed: Novartis took a $485M impairment charge and discontinued ZPL-389 after a Phase 2b dose-ranging trial missed efficacy criteria, validating the consensus that Dupixent and oral JAKs would dominate moderate-to-severe AD.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Novartis AG / Ziarco Group Limited (this deal) | 2016 | $420M | 12 |
| Novartis AG / Advanced Accelerator Applications S.A. | 2017 | $3.9B | 98 |
| Novartis AG / Endocyte, Inc. | 2018 | $2.1B | 96 |
| Novartis AG / Lek Pharmaceuticals d.d. | 2002 | $876M | 88 |
| Novartis AG / GlaxoSmithKline plc | 2014 | $16.0B | 81 |
| Novartis AG / PTC Therapeutics Inc. | 2024 | $2.9B | 80 |
| Novartis AG / Chinook Therapeutics Inc. | 2023 | $3.5B | 78 |
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More: 2016 deals · Novartis AG deals · Dermatology deals