LONDON (Alliance News) - Pharmaceutical company GlaxoSmithKline PLC on Monday said regulators have approved its deal to sell the rights to ofatumumab for auto-immune indications to Swiss peer Novartis AG, meaning the transaction has completed.
Novartis could end of paying up to USD1.03 billion under the deal, comprising of USD300.0 million paid on closing, USD200.0 million to be paid subject to the start of a phase III study in relapsing remitting multiple sclerosis by Novartis, and further contingent payments of up to USD534.0 million on achievement of other development milestones.
Novartis also will pay royalties of up to 12% to Glaxo on any future net sales of ofatumumab in auto-immune indications.
Income generated from the divestment will be treated as non-core, Glaxo said.
The deal was signed back in August.
Shares in Glaxo were up 0.9% at 1,346.00 pence on Monday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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