Novartis acquires all remaining rights to GSK’s Ofatumumab

By: |
August 21, 2015 2:49 PM

To develop treatments for MS and other autoimmune indications

To develop treatments for MS and other autoimmune indications

Novartis has entered into an agreement to acquire all remaining rights to Ofatumumab from GlaxoSmithKline (GSK). Novartis previously acquired the rights to Ofatumumab for oncology indications and it is marketed under the brand name Arzerra.

“Novartis is pleased to further reinforce our commitment to neuroscience and to add an exciting new treatment to our strong MS portfolio,” said David Epstein, Head of Novartis Pharmaceuticals. “Our vision for patients with MS is to develop treatments that improve on current standards of care, meeting patients’ needs at every stage of their disease with innovative and targeted drugs.”

Novartis will be responsible for the worldwide development, regulatory and commercialisation activities for Ofatumumab. Under the terms of the agreement, Novartis will make an initial upfront payment of $300 million to GSK for the acquisition of the compound and a further payment of $200 million payable following the start of a phase III study in MS by Novartis. Upon completion of pre-determined milestones, contingent payments of up to $534 million may be made. Novartis will also pay royalties of up to 12 per cent to GSK on any future net sales of Ofatumumab in auto-immune conditions.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.