Novartis signs $90m deal with Oxford BioMedica
pharmafile | October 10, 2014 | News story | Manufacturing and Production, Research and Development, Sales and Marketing | CART-019, Novartis, Oxford BioMedica, immunotherapy, oxb
UK-based biotech Oxford BioMedica is working with Novartis in a transformational deal for the firm worth $90 million to develop and manufacture cancer treatments.
This new collaboration builds upon a previous development contract between the firms dating back to May last year, which introduced a £4m pact centering around viral lentivectors.
This latest arrangement sees Oxford BioMedica (OXB) pocketing up to $90m from Novartis over the next three years in return for helping the Swiss firm develop its closely-watched CART-19 leukaemia drug.
John Dawson who is the chief executive of Oxford BioMedica, says: “We are delighted to sign a second agreement with Novartis. Oxford BioMedica now has a breadth of leading capabilities in gene and cell therapy.”
Under the terms of the new agreement Novartis will pay OXB $14 million upfront, which includes a $4.3 million equity subscription for a non-exclusive worldwide development and commercialisation licence in oncology – under the Group’s LentiVector platform.
OXB will manufacture lentiviral vectors expressing CTL019/CART-019, and has granted Novartis an exclusive licence for the worldwide development and commercialisation of any Chimeric Antigen Receptor (CAR) T cell products that arise from the collaboration.
The Oxford-based gene specialist company is no stranger to big pharma deals, at the end of last year it was granted a $1 million milestone payment from Pfizer to begin human testing for a new targeted cancer therapy.
Its collaboration with Pfizer is potentially worth up to $27 million, which comprises future milestone payments and licence option fees that are naturally subject to the achievement of certain objectives.
Indeed the $90 million OXB is eligible for from Novartis over the next three years for this deal is dependent on and comprised of the upfront licence payment, the equity investment, manufacturing and process development services and various performance incentives.
Seemingly unfazed by any challenges ahead that could scupper plans, Dawson adds: “Our team has demonstrated its ability to solve complex gene and cell therapy manufacturing challenges, and to develop the state-of-the-art analytics essential for such programmes.”
Brett Wells
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