Novartis AG announced a licensing and option agreement with China’s Abogen Biosciences to develop RNA-encoded therapeutics. The deal includes a $575 million upfront payment to Abogen. Abogen could receive up to $7.2 billion in milestone payments, bringing the total potential value to nearly $7.8 billion.
Novartis gains exclusive worldwide rights to Abogen’s lead asset, ABO2203, an mRNA-encoded T-cell engager designed to treat autoimmune diseases. The agreement also gives Novartis options to license other programs from Abogen’s RNA platform.
The deal expands Novartis’s presence in mRNA-based therapies, particularly for autoimmune conditions, an area with significant unmet medical need. The financial commitment reflects the companies’ potential to develop the technology for clinical and commercial use.