Novartis strikes Huntington’s drug deal as U.S. expansion plans gather pace

Novartis (SWX: NOVN) has completed a global licensing and collaboration deal with U.S.-based PTC Therapeutics (NASDAQ: PTCT) for the development of PTC518, an experimental oral treatment for Huntington’s disease, as the Swiss pharma group seeks to shore up its pipeline ahead of looming patent expiries —including for Entresto, its blockbuster heart failure treatment.
Under the agreement, Novartis will assume responsibility for the development, manufacturing, and global sales of the drug following the completion of the ongoing Phase 2 trial, which is expected to be completed by June. One-year efficacy data is scheduled for release in the second quarter of 2025.

The financial structure of the deal reflects long-term revenue-sharing incentives. In the U.S., PTC will retain a 40% share of net profits, with Novartis taking the remaining 60%. Outside the U.S., PTC is eligible for tiered, double-digit royalties on net sales.

While the treatment remains high-risk—Visible Alpha consensus puts the probability of regulatory approval at just 28%—it offers meaningful commercial upside. If approved, the drug is projected to generate $115 million in first-year sales for Novartis and $54 million for PTC in 2029. By comparison, Ingrezza’s revenue from Huntington’s is forecast to reach $198 million in the U.S. by the same year. Peak global sales for Novartis from PTC518 could reach $946 million by 2034, while PTC’s share is projected at $382 million a year later.

The deal comes alongside a broader push by Novartis to deepen its U.S. presence. Last week, the company unveiled plans to invest $23 billion to build or expand 10 facilities across the country over the next five years—mirroring similar moves by Eli Lilly (NYSE: LLY) and Johnson & Johnson (NYSE: JNJ). The announcement follows growing concerns in the industry over potential tariffs on imported medicines. While drugs were excluded from the recent executive order, pharma groups and lobbyists are bracing for possible future trade restrictions.