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www.fdanews.com/articles/172807-novartis-to-pay-up-to-1-billion-for-rights-to-gsks-arzerra

Novartis to Pay Up to $1 Billion for Rights to GSK’s Arzerra

August 27, 2015

Novartis has agreed to pay up to $1 billion for the rights to autoimmune indications for GlaxoSmithKline’s Arzerra, including multiple sclerosis, following an earlier deal for the drug’s oncology indications.

Under the transaction, expected to close by the end of this year, Novartis will pay $300 million upfront, $200 million at the start of a Phase 3 study on relapsing-remitting MS, and up to $534 million for achieving certain milestones.

Novartis will also pay GSK royalties of up to 12 percent on any future net sales of Arzerra (ofatumumab) in autoimmune indications.

The deal strengthens Novartis’ MS portfolio, which consists of Gilenya (fingolimod), Extavia (interferon beta-1b for subcutaneous injection), two investigational treatments known as BAF312 and CJM112 and Glatopa, the first generic version of Teva’s Copaxone (glatimer).

Novartis acquired the oncology indications for Arzerra as part of a three-part transaction in March. — Jonathon Shacat