Novartis buys remaining rights to GSK’s cancer and MS drug ofatumumab for about $1bn

Ofatumumab, a fully human monoclonal antibody currently being designed for relapsing remitting multiple sclerosis (RRMS) and other autoimmune indications, targets CD20 and is administered by subcutaneous injection.

Previously, Novartis acquired the rights to ofatumumab (Arzerra) for oncology indications including chronic lymphocytic leukaemia (CLL) as part of the major three-part transaction between the two firms that completed earlier this year.

The new deal will see Novartis pay GSK $300m up front to buy the compound and a further $200m is payable after the start of a phase III study in MS by Novartis.

In addition, payments of up to $534m will be made if pre-agreed milestones are met.

Novartis will also pay royalties of up to 12% to GSK on any future net sales of ofatumumab in auto-immune indications.

GSK chief strategy officer David Redfern said: "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.

"We believe GSK’s pipeline has significant potential to drive long-term performance for the Group and will be profiling it further at our R&D event in November."

Novartis will now be responsible for the worldwide development, regulatory and commercialization activities for ofatumumab.

Novartis Pharmaceuticals head David Epstein said: "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."

Image: Novartis headquarters in Basel Switzerland. Photo: courtesy of Andrew.