As part of the initial research collaboration, BioArctic will receive USD 30 million in upfront payment.

“I’m excited by today’s 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,” says Gunilla Osswald, CEO at BioArctic.

Additional payments of up to USD 772 million

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 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, states the company.

The third collaboration with partners using the BrainTransporter technology

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.