LONDON (Alliance News) - GlaxoSmithKline PLC on Friday said it has signed an agreement with a subsidiary of Swiss peer Novartis AG to sell its rights to ofatumumab for auto-immune indications, including multiple sclerosis.
The FTSE 100-listed drugmaker said Novartis Pharma AG had previously acquired the oncology indications for ofatumumab as part of the three-party transaction that Glaxo and Novartis carried out earlier this year. Following Friday's deal, Novartis Pharma will own the rights to ofatumumab in all indications.
Under the terms of Glaxo's divestment, it will get USD300 million upon closing of the transaction, USD200 million once a phase 3 study starts into using ofatumumab for relapsing remitting multiple sclerosis, plus further contingent payments of up to USD534 million, payable upon other development milestones being reached.
Novartis Pharma will also pay Glaxo royalties of up to 12% on any future net sales of ofatumumab in auto-immune indications.
"We are pleased to have completed this transaction to divest the remaining rights in ofatumumab, crystallising significant additional value for Glaxo shareholders. We continue to focus on progressing our pipeline in core therapy areas including HIV, oncology, vaccines, cardiovascular, immuno-inflammation and respiratory diseases," said David Redfern, Glaxo's chief strategy officer.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Glaxosmithkline (GSK)