GSK to Divest Ofatumumab to Novartis Pharma
GSK announces plan to divest its rights in ofatumumab for auto-immune indications for up to $1 billion.
GlaxoSmithKline plc announced on Aug. 21, 2015 an agreement with Novartis Pharma AG, a subsidiary of Novartis AG, to divest its rights in ofatumumab for auto-immune indications, including multiple sclerosis for up to $1 billion, plus royalties.
Earlier this year, Novartis Pharma acquired the oncology indications for ofatumumab (Arzerra) as part of a three-part transaction between GSK and Novartis. After completion of the latest transaction, Novartis Pharma will own rights to ofatumumab in all indications.
The consideration payable by Novartis Pharma to GSK comprises milestone payments of $300 million payable at closing; $200 million payable subject to the start of a phase III study in relapsing remitting multiple sclerosis by Novartis; and further contingent payments of up to $534 million payable on the achievement of certain other development milestones.
Novartis Pharma will also pay royalties of up to 12% to GSK on any future net sales of ofatumumab in auto-immune indications.
The transaction is expected to complete by the end of 2015.
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