Novartis buys rights to GSK MS drug for up to $1 billion
pharmafile | August 21, 2015 | News story | Medical Communications, Research and Development, Sales and Marketing | GlaxoSmithKline, Novartis, multiple sclerosis, ofatumumab
Novartis has added to its burgeoning multiple sclerosis portfolio with the $300 million acquisition of all outstanding rights to GlaxoSmithKline’s Ofatumumab antibody.
This Swiss company had previously acquired the rights to Ofatumumab for oncology indications, which it has marketed under the brand name Arzerra, but it is now being developed for treatment of relapsing remitting multiple sclerosis (RRMS) and other autoimmune indications.
RRMS is believed to be associated with activation of B cells, a type of white blood cell in the immune system. The Ofatumumab antibody works by binding to the CD20 molecule on the surface of B cells and depleting them in lymphatic tissues.
David Epstein, head of Novartis Pharmaceuticals, says: “Novartis is pleased to further reinforce our commitment to neuroscience and to add an exciting new treatment to our strong MS portfolio. 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.”
Positive phase IIa results for subcutaneous Ofatumumab demonstrated significant reduction of up to 90% in the cumulative number of new brain lesions in patients with MS between weeks 4-12 in the study. No unexpected safety findings were reported.
Novartis said that since this was a dose-finding trial, Ofatumumab is ready to begin phase III pivotal studies, after which a further payment of $200 million will be due to Britain’s GSK.
Further payments of up to $534 million may be made upon completion of pre-determined milestones, and Novartis will also pay royalties of up to 12% to GSK on any future net sales of Ofatumumab in auto-immune conditions.
David Redfern, chief strategy officer at GSK, comments: “We are pleased to have completed this transaction to divest the remaining rights in ofatumumab, crystallising significant additional value for GSK shareholders.
“We continue to focus on progressing our pipeline in core therapy areas including HIV, oncology, vaccines, cardiovascular, immuno-inflammation and respiratory diseases.”
Joel Levy
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