Dive Brief:
- Arzerra (ofatumumab) is being studied for use in various diseases, including cancer and multiple sclerosis (MS). Novartis has already purchased rights to certain cancer indications for Arzerra.
- Arzerra is a fully human monoclonal antibody that targets the CD20 protein, leading to depletion of B cells. This mode of action has a therapeutic impact in MS.
- Previously, Novartis purchased the cancer indications for Arzerra.
Dive Insight:
The addition of Arzerra's MS indication makes sense given Novartis' focus on neuroscience, and MS in particular. Novartis' current portfolio includes Gilenya (fingolomid), Glatopa (a generic version of Teva's Copaxone---glatiramer acetate) and two investigational compounds, BAF312 and CJM112.
According to the deal's structure, GSK will receive $300 million upfront, and $200 million once phase III trials are started. In addition, GSK will be eligible to receive up to $534 million in milestone payments, as well as up to 12% overall of net sales of Arzerra related to autoimmune conditions.