From Novartis to Novo, the big pharma companies are turning to Chinese biotech firms
Licence agreement between the Swiss group and Abogen Biosciences for an mRNA-based therapy with a potential value of $7.8 billion
Key points
Big Pharma’s investments in the biotech sector show no sign of slowing down. The latest deal to be announced is that of Novartis, which is backing mRNA for autoimmune diseases. The Swiss group has signed a licensing agreement with Abogen Biosciences for the development of a messenger RNA (mRNA)-based therapy, with a potential total value of up to $7.8 billion.
The agreement provides for an initial payment of $575 million by Novartis to secure the rights to ABO2203, a drug candidate developed by the Chinese company and based on an mRNA platform. The programme aims to use messenger RNA to directly induce the patient’s body to produce a therapeutic molecule capable of modulating the immune system.
According to a statement from Abogen, ABO2203 is designed to ‘reset’ the immune system by eliminating a specific population of T cells involved in the processes underlying autoimmune diseases. These are conditions in which the immune system mistakenly attacks healthy cells, organs and tissues.
The agreement is not limited to ABO2203. Novartis has, in fact, also secured options on further programmes based on Abogen’s RNA technology platform. Should all the options be exercised and the targets set out in the agreement be met, the Chinese company could receive up to a further $7.2 billion, in addition to the initial payment. The agreement also provides for the possibility of receiving royalties on any future sales of the products.
On the Zurich stock exchange, Novartis shares closed the session down 1.4 per cent.
