Swiss pharmaceutical giant Novartis International has agreed to pay $US200 million ($261.83 million) upfront and committed up to an additional $US500 million in milestone payments to acquire Australian drug developer Spinifex Pharma.

The deal has sparked calls for the Abbott government to reverse its cuts to early-stage funding for commercialisation of Australian research. 

Spinifex Pharma attracted attention from international suitors after the results of its phase 1 and phase 2b clinical trials with patients suffering ongoing neuropathic pain following a bout of shingles were published in respected medical journal The Lancet.

For more details, go to: http://www.smh.com.au/business/novartis-buys-queensland-drug-developer-spinifex-for-us200m-plus-20150629-gi0hvn.html