Pharmaceutical company Novartis obtains a license agreement worth over $30 million from BioArctic for potential research and development opportunities.

In a significant development for the field of drug discovery, BioArctic AB and Novartis AG have entered into a licence option agreement. This collaboration aims to utilise BioArctic's BrainTransporter technology to deliver a target molecule in the field of neurodegeneration into the brain.

The BrainTransporter technology, developed by BioArctic, is renowned for its ability to deliver various modalities across the blood-brain barrier. This includes antibodies, antisense oligos, peptides, enzymes, and antibody constructs, making it a valuable tool in overcoming the significant challenge of effectively delivering therapeutics across the blood-brain barrier.

One of the antibodies that Novartis intends to use in this collaboration is IMP701. This monoclonal antibody, licensed from Immutep, is currently in preclinical development. Although not specifically Alzheimer-focused, LAG-3 pathways, which IMP701 targets, may intersect with neuroinflammatory processes relevant to neurodegeneration.

The potential deal value for this collaboration is up to US$802 million. Novartis will pay €30 million upfront to BioArctic to test its BrainTransporter platform. If Novartis exercises the licence option, BioArctic would be entitled to additional payments of up to US$772 million.

Post-market authorisation, BioArctic would receive mid-single-digit royalties on future global product sales. This agreement is not the first time BioArctic has collaborated on BrainTransporter platform development. Previously, the company worked with Eisai Co., Ltd. and Bristol Myers Squibb.

Interestingly, Sironax's BDM platform shares similarities with BioArctic's BrainTransporter technology. However, it is worth noting that IMP701 is not the only preclinical antibody at Novartis that fits the description for this collaboration. In fact, only one publicly known preclinical antibody at Novartis fits this description.

Novartis intends to use this collaboration to make a significant impact in the field of neurodegeneration, a disease area that urgently requires innovative solutions. The successful delivery of a target molecule into the brain using BioArctic's BrainTransporter technology, combined with a proprietary Novartis antibody, could potentially lead to groundbreaking treatments for neurodegenerative diseases.

Pharmaceutical company Novartis obtains a license agreement worth over $30 million from BioArctic for potential research and development opportunities.