Novartis strikes up to $7.8 billion mRNA deal with China's Abogen
NVS•Novartis agreed to pay Abogen $575 million upfront for exclusive rights to experimental mRNA drug ABO2203 and options on other therapies, with up to $7.2 billion in additional milestone payments tied to development and regulatory approval.
1. Deal terms
Novartis will gain exclusive rights to ABO2203, which is designed to treat autoimmune diseases by targeting disease-causing B cells, and options to license other therapies based on Abogen's RNA technology. Abogen could receive up to $7.2 billion in additional payments if the drug advances through development and wins regulatory approval.
2. Autoimmune disease focus
Novartis said the technology complements its existing approach to autoimmune disease. The partnership follows two late-stage trial failures disclosed in September, which the article said wiped nearly $30 billion from Novartis' market value and prompted a major shareholder to call for tighter board oversight of future acquisitions.
