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Swiss drugmaker Novartis (NOVN.S) has signed an up to $5.2 billion licensing and options deal with Argo Biopharmaceutical.
Novartis signed up to a $5.2 billion licensing deal with Argo Biopharmaceutical for RNAi candidates.
KEY POINTS
Novartis gains first negotiation rights for Argo's mid-stage drug BW-00112 targeting severe hypertriglyceridemia.
The agreement includes options to license two discovery-stage drugs and one RNA-based molecule entering trials next year.
Argo disclosed Novartis may join its next equity financing and total collaboration value exceeds $9 billion.
The company's logo is seen at a building of Swiss drugmaker Novartis in Rotkreuz, Switzerland, January 29, 2020. REUTERS/Arnd Wiegmann/ File Photo Purchase Licensing Rights , opens new tab
Sept 3 (Reuters) - Swiss drugmaker Novartis (NOVN.S) , opens new tab has signed an up to $5.2 billion licensing and options deal with Argo Biopharmaceutical for its experimental candidates that target cardiovascular diseases, the China-based biotech said on Wednesday.
Argo is developing therapeutics that use the RNA interference technology, or RNAi, to silenece genes that contribute to disease or render them ineffective.
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The deal builds on Novartis' ongoing collaboration with Argo, and includes the right of first negotiation for Argo's experimental drug, BW-00112.
The RNAi drug is currently in mid-stage development for severe hypertriglyceridemia, which leads to elevated levels of a type of fat in the blood and increases the risk of cardiovascular diseases such as heart attack and stroke.
Alnylam's (ALNY.O) , opens new tab vutrisiran, branded as Amvuttra, is an RNAi drug approved in the U.S. to treat transthyretin amyloid cardiomyopathy, a rare and deadly heart disease.
Argo's candidates, which are designed to "deeply and durably target disease-causing proteins, represent an important paradigm shift in the prevention and treatment of cardiovascular diseases," said Shaun Coughlin, Global Head of Cardiovascular and Metabolism at Novartis Biomedical Research.
Under the agreement for sales outside China, Argo would receive an upfront payment of $160 million and up to $5.2 billion in milestone payments and royalties on future sales.
According to the terms of the deal, Novartis will also have the option to license two discovery-stage drug candidates, one for severe hypertriglyceridemia, and the other for mixed dyslipidemia, as well as an additional RNA-based molecule expected to enter clinical trials next year.
Argo said Novartis has also expressed a non-binding intention to participate in its next round of equity financing.
The overall collaboration with Novartis adds up to more than $9 billion in downstream milestones excluding royalties, Argo said.
Reporting by Mariam Sunny in Bengaluru; Editing by Shinjini Ganguli and Sriraj Kalluvila
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