BioArctic up 13% after $30M deal with Novartis

Investing.com - BioArctic AB (ST:BioAB) shares rose more than 13% on Tuesday. The company announced that it has signed an option, collaboration and license agreement with Novartis to apply its BrainTransporter technology to an as-yet-undisclosed neurodegeneration target.

The Stockholm-based company reported that it will receive an upfront payment of $30 million as part of the deal. If Novartis chooses to exercise its option to license a drug candidate from the Novartis collaboration, BioArctic will be able to receive milestone payments of up to $772 million.

The deal also includes staggered mid-single digit single-digit royalties on future global product sales. Novartis will have full responsibility for the development and commercialization of the drug candidate worldwide.

This is the third agreement involving BioArctic's BrainTransporter platform. Previous agreements include a research evaluation agreement with Eisai for BAN2802 and a global licensing agreement with Bristol Myers Squibb for BioArctic's pyroglutamate-amyloid-beta antibody program. BAN2803 uses this technology. BioArctic stated that it continues to retain the rights to the platform for additional collaborations.

This article was created, translated and reviewed by an editor with the support of artificial intelligence. See our Terms and Conditions section for more information.

Continue Reading at Investing.com Turkey