Novartis Buys Remaining Rights To GSK Treatment For Up To $1 Billion

The FTSE 100-listed drugmaker said Novartis Pharma AG had previously acquired the oncology indications for ofatumumab as part of the three-party transaction that Glaxo and Novartis carried out earlier this year.

In a news release, Novartis said it was pleased to reinforce even further its commitment to neuroscience and add a new experimental treatment to its already strong portfolio of MS drugs.

Novartis is to acquire all remaining rights to Ofatumumab from GSK for up to $1 billion plus royalties.

Novartis will pay GSK $300 million up front to buy the compound and a further $200 million is payable after the start of a phase III study in MS by Novartis. GSK will also be eligible for payments of up to $534 million contingent on the achievement of certain other development milestones, taking the total amount of the deal to a little over $1 billion. Ofatumumab and ocrelizumab attack a type of white blood cell in the immune system that is a key contributor to spinal-cord damage.

GSK, a London-based company that is one of the Triangle’s largest employers, also would receive royalty payments of up to 12 percent of sales if Novartis, which is headquartered in Switzerland, succeeds in bringing the drug to market.

Novartis has decided to purchase all outstanding privileges to Ofatumumab from England’s GlaxoSmithKline for approximately US$1-billion, improving the Swiss drugs makers steady of multiple sclerosis (MS) remedies.

Ofatumumab works by binding to the CD20 molecule on the surface of B cells and depleting them in lymphatic tissues.

The drug demonstrated positive results in a Phase 2a dose finding trial.

No unexpected safety findings were reported in the study. The drug has auto-immune indications, including multiple sclerosis.

More than 2.3 million people worldwide are affected by MS, a disease that most often begins in early adulthood. “We continue to focus on progressing our pipeline in core therapy areas including HIV, oncology, vaccines, cardiovascular, immuno-inflammation and respiratory diseases”, said David Redfern, Glaxo’s chief strategy officer.