Novartis and BioArctic sign collaboration and license deal

[Neuron system disease]
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BioArctic AB (OTCPK:BRCTF [https://seekingalpha.com/symbol/BRCTF]) has announced a collaboration and licensing agreement with Novartis Pharma AG (NYSE:NVS [https://seekingalpha.com/symbol/NVS]) to explore a potential new treatment for neurodegenerative diseases.

The partnership centers around combining BioArctic’s proprietary BrainTransporter technology with a Novartis-owned antibody, aimed at enhancing drug delivery to the brain.

Under the terms of the deal, BioArctic will receive an upfront payment of USD 30 million during the initial research phase.

In this stage, BioArctic will develop a new drug candidate using its BrainTransporter platform. Novartis will then evaluate the results and determine whether to exercise its option to license the candidate.

If Novartis moves forward, BioArctic stands to receive up to USD 772 million in additional milestone payments, along with tiered mid-single-digit royalties on future global sales should the therapy reach the market.

The company added [https://seekingalpha.com/pr/20210935-bioarctic-and-novartis-sign-an-option-collaboration-and-license-agreement-using]that should Novartis choose to license the candidate, it will take over full responsibility for the drug’s worldwide development and commercialization.

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