Novartis Licenses BioArctic’s BrainTransporter Technology

BioArctic AB has entered into an option, collaboration and license agreement with Novartis Pharma AG for a potential new treatment combining BioArctic’s BrainTransporter technology with an undisclosed target in neurodegeneration. As part of the initial research collaboration, BioArctic will receive $30 million in upfront payment.

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 $772 million. BioArctic will also be entitled to 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 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.

“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,” said Gunilla Osswald, CEO at BioArctic.

Sophie Parmentier Batteur, Head of Neurodegeneration Research at Novartis, said, “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. Our focus is to pioneer innovative therapies that improve treatment outcomes by impacting disease progression, to provide meaningful therapies for patients with severe neurological conditions.”