NVS - Conatus In NASH Fibrosis: Making The Case For Emricasan
Investment Thesis
Conatus (CNAT) is a small-cap ($59M) liver therapeutics Pharmaceuticals founded in 2005 by Drs. Steven Mento and Alfred Spada. Emricasan (IDN-6556, PF-03491390) is an oral irreversible pan-caspase inhibitor with dual anti-apoptotic and anti-inflammatory effects.
In December 2016, Conatus signed an exclusive option, collaboration and license agreement with Novartis (NVS) for post-Phase 2b clinical development of emricasan pending clinical success. Specifically, Novartis would bear the financial costs for the future clinical development of emricasan in Phase 3 trials, with scientific input from Conatus.
To progress to Phase 3 trial, emricasan has to