AB BioArctic unveiled collaboration, option & license agreement with Novartis Pharma AG for a potential new treatment combining BioArctic's proprietary BrainTransporter technology with an undisclosed target in neurodegeneration. In this initiative BioArctic will receive USD 30 million in upfront payment.
This agreement is the third collaboration BioArctic entering into with partners using the BrainTransporter technology. BioArctic retains all rights for use of the BrainTransporter platform outside of the scope of these three agreements. The BrainTransporter platform can be used in a number of different therapy areas for delivery of biologics and other modalities, giving BioArctic many potential future partnering opportunities.
Novartis will figure out the data generated during the initial collaboration and decide whether to exercise their option to license any drug candidate generated. If Novartis exercises their option, BioArctic will be eligible to receive additional payments of up to USD 772 million. If the product reaches the market, BioArctic will also be entitled to tiered mid-single digit royalties on future global product sales.
At its initial phase of research collaboration, BioArctic will generate a new drug candidate combining the BrainTransporter technology with a Novartis proprietary antibody. Novartis will assume full responsibility for the global development and commercialization of the drug candidate and related products with Novartis decide to exercise their option following the evaluation of the generated drug candidate.
Executive Statement
According to Gunilla Osswald, CEO at BioArctic, they are excited by the announcement. Novartis shares their passion for science and helping patients with severe neurological disorders. With yet another BrainTransporter agreement it is becoming evident that this versatile platform has huge potential to improve many different projects, internally as well as externally generated, and could support companies across the field in their pursuit of helping people with brain disorders.
