Glaxo Sells Drug Rights to Novartis
August 21 2015 - 6:20AM
Dow Jones News
LONDON—GlaxoSmithKline PLC is selling its remaining rights to a
drug for use in treating autoimmune diseases, including multiple
sclerosis, to Novartis AG for up to $1 billion, plus royalties.
Glaxo said on Friday that Novartis will own rights to
ofatumumab, as the drug is known, in all indications. The Swiss
company will also pay royalties of up to 12% to Glaxo on any future
net sales of the drug related to autoimmune indications. Novartis
had previously bought the rights to the drug as a cancer treatment
for which it is marketed as Arzerra.
The sale follows the previously agreed $20 billion asset swap
between the two pharmaceutical groups, which they completed earlier
this year.
The Novartis transaction involved Glaxo trading its oncology
franchise for the Swiss company's vaccines business and forming a
joint venture on consumer health care, thereby reducing Glaxo's
reliance on innovative medicines.
"We continue to focus on progressing our pipeline in core
therapy areas including HIV, oncology, vaccines, cardiovascular,
immuno-inflammation and respiratory diseases," said GSK Chief
Strategy Officer David Redfern.
"We believe Glaxo's pipeline has significant potential to drive
long-term performance for the group and will be profiling it
further at our R&D event in November," Mr. Redfern said.
Novartis said the deal would boost its lineup of
multiple-sclerosis treatments. "Novartis is pleased to further
reinforce our commitment to neuroscience and to add an exciting new
treatment to our strong MS portfolio," said David Epstein, head of
Novartis Pharmaceuticals.
The deal is expected to close by the end of the year
Write to Ian Walker at ian.walker@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 21, 2015 06:05 ET (10:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
GSK (NYSE:GSK)
Historical Stock Chart
From Sep 2024 to Oct 2024
GSK (NYSE:GSK)
Historical Stock Chart
From Oct 2023 to Oct 2024