Switzerland-based Novartis has signed an agreement with British drugmaker GlaxoSmithKline (GSK) to purchase all remaining rights of Ofatumumab, for around $1bn.
Ofatumumab, which is a fully human monoclonal antibody that targets CD20, is being developed for relapsing remitting multiple sclerosis (RRMS) and other autoimmune indications.
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RRMS is believed to be associated with activation of B cells, a type of white blood cell in the immune system.
Earlier, Novartis purchased the rights to Ofatumumab for oncology indications, which is marketed under the brand name Arzerra.
According to Novartis, the phase two a results for subcutaneous Ofatumumab showed significant reduction of up to 90% in the cumulative number of new brain lesions in patients with MS between weeks four and 12 in the study.
Novartis Pharmaceuticals head David Epstein said: "Novartis is pleased to further reinforce our commitment to neuroscience and to add an exciting new treatment to our strong MS portfolio.
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By GlobalData"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."
As part of the deal, GSK will receive an initial upfront payment of $300m from Novartis for the compound and is also eligible to secure a further payment of $200m following the start of a phase III study in MS by Novartis.
The deal will also include contingent payments of around $534m based on achieving pre-determined milestones.
In addition, GSK will receive royalties of up to 12% from Novartis on any future net sales of Ofatumumab in auto-immune conditions.
Novartis will take the responsibility for worldwide development, regulatory and commercialisation activities for Ofatumumab.
Image: Photomicrograph of a demyelinating MS-Lesion. Photo: courtesy of Marvin 101.
