The consideration payable by Novartis Pharma to GSK may reach up to $1,034m and comprises a series of milestone payments as follows:
$300m paid at closing
$200m payable subject to the start of a phase III study in relapsing remitting multiple sclerosis by Novartis
further contingent payments of up to $534m payable on the achievement of certain other development milestones
Novartis Pharma will also pay royalties of up to 12 per cent to GSK on any future net sales of ofatumumab in auto-immune indications.
Income generated from the divestment will be treated as non-core in line with the accounting policies outlined in the third quarter financial results announcement of 28 October 2015.