Cadenttx

Cadent Therapeutics was a privately held, clinical-stage biopharmaceutical company based in Cambridge, Massachusetts, focused on small molecules targeting neuronal ion channels for cognitive, mood and movement disorders. The company described its approach as combining target specificity, patient selection, drug design and optimization, and novel quantitative endpoints to produce first-in-class allosteric modulators intended to regularize brain rhythms.

Its portfolio centered on NMDA receptor and SK channel modulation. CAD-9303, an NMDA receptor positive allosteric modulator, was in Phase I for schizophrenia, with the aim of addressing negative and cognitive symptoms. CAD-1883, an SK channel positive allosteric modulator, was a Phase II asset explored in movement disorders, with stated indication interest including spinocerebellar ataxia and essential tremor. MIJ821, an NMDA receptor negative allosteric modulator, was licensed exclusively to Novartis in 2015 and was being tested by Novartis in a Phase II trial for treatment-resistant depression. The company also held pre-clinical programs. Novartis agreed in December 2020 to acquire all outstanding capital stock of Cadent, gaining full rights to the NMDA receptor program, CAD-1883 and the pre-clinical assets, and buying out milestones and royalties on MIJ821.

Founding story

Cadent Therapeutics launched in 2017 through the merger of Luc Therapeutics and Ataxion Therapeutics, with a focus on small molecules targeting neuronal ion channels.

Business model

Cadent operated as a research and development-stage biopharmaceutical company, advancing proprietary small-molecule programs through clinical development while monetizing assets through out-licensing and collaboration with a large pharmaceutical partner, and ultimately through the sale of the company.

Revenue derived from partnership economics rather than product sales: an exclusive license and collaboration agreement with Novartis for MIJ821 (2015), which carried milestones and royalties later bought out, and acquisition consideration of $210 million upfront plus up to $560 million in milestone payments.

Traction

Three clinical-stage assets at the time of the acquisition announcement: CAD-9303 in Phase I for schizophrenia, CAD-1883 in Phase II for movement disorders, and partner-run MIJ821 in Phase II for treatment-resistant depression, plus pre-clinical programs. The company raised a $40 million Series B and was valued at up to $770 million in total potential consideration in the Novartis transaction.

Latest developments

On December 17, 2020, Novartis and Cadent announced a definitive agreement for Novartis to acquire all outstanding capital stock of Cadent for $210 million upfront and up to $560 million in milestones, including a buyout of MIJ821 milestones and royalties; closing was anticipated in the first quarter of 2021 subject to Hart-Scott-Rodino clearance. Saniona, which held an approximately 3% stake in Cadent, disclosed the planned transaction.