BioArctic inks pact with Novartis regarding treatment combining BrainTransporter technology with undisclosed target in neurodegeneration
Stockholm: BioArctic AB (publ) has announced that the company has entered into an option, collaboration and license agreement with Novartis Pharma AG regarding a potential new treatment combining BioArctic's proprietary BrainTransporter technology with an undisclosed target in neurodegeneration.
As part of the initial research collaboration, BioArctic will receive USD 30 million in upfront payment.
Novartis will evaluate the data generated during the initial collaboration and decide whether to exercise their option to license any drug candidate generated. If Novartis exercises their option, BioArctic will be eligible to receive additional payments of up to USD 772 million. BioArctic will also be entitled to tiered mid-single digit royalties on future global product sales if the product reaches the market.
Under the initial research collaboration, BioArctic will generate a new drug candidate combining the BrainTransporter technology with a Novartis proprietary antibody. Should Novartis decide to exercise their option following the evaluation of the generated drug candidate, Novartis will assume full responsibility for the global development and commercialization of the drug candidate and related products.
"I'm excited by this announcement. Novartis shares our passion for science and helping patients with severe neurological disorders. With yet another BrainTransporter agreement it is becoming evident that this versatile platform has huge potential to improve many different projects, internally as well as externally generated, and could support companies across the field in their pursuit of helping people with brain disorders," said Gunilla Osswald, CEO at BioArctic.
"At Novartis, we are deeply committed to advancing science to help discover treatments for devastating nervous system disorders," said Sophie Parmentier Batteur, Head of Neurodegeneration Research at Novartis. "Collaborating with BioArctic allows us to explore the exciting potential of the BrainTransporter technology to promote brain uptake and optimize systemic delivery of novel therapeutic agents by leveraging the biology of the blood-brain barrier. Our focus is to pioneer innovative therapies that improve treatment outcomes by impacting disease progression, to provide meaningful therapies for patients with severe neurological conditions."
This agreement is the third collaboration BioArctic has entered into with partners using the BrainTransporter technology. BioArctic retains all rights for use of the BrainTransporter platform outside of the scope of these three agreements. The BrainTransporter platform can be used in a number of different therapy areas for delivery of biologics and other modalities, giving BioArctic many potential future partnering opportunities.
