BioArctic AB (BIOA_B.ST) Tuesday said it has entered into an option, collaboration and license agreement with Novartis Pharma AG (NVS) to develop a new treatment using BioArctic's proprietary BrainTransporter technology with an undisclosed target in neurodegeneration.
As part of the deal, BioArctic will receive an upfront payment of $30 million.
Under the partnership, BioArctic will initially generate a new drug candidate combining the BrainTransporter technology with a Novartis proprietary antibody. If Novartis exercise its option to license the drug candidate generated, BioArctic will be eligible to receive additional payments of up to $772 million. BioArctic will also get tiered mid-single digit royalties on future sales of the product. Novartis will be responsible for the development and sales of the drug candidate and related products.
"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," said Gunilla Osswald, CEO at BioArctic.
"Collaborating with BioArctic allows us to explore the exciting potential of the BrainTransporter technology to promote brain uptake and optimize systemic delivery of novel therapeutic agents by leveraging the biology of the blood-brain barrier," said Sophie Parmentier Batteur, Head of Neurodegeneration Research at Novartis.
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