Swiss pharmaceutical giant Novartis has signed a licensing and option deal worth up to $7.8 billion with Chinese biotech company Abogen Biosciences to develop mRNA-based treatments for autoimmune diseases.
Under the agreement, Novartis gains exclusive worldwide rights to Abogen's experimental drug ABO2203 and also has the option to license additional therapies developed using the Chinese company's RNA delivery platform.
In return, Suzhou-based Abogen will receive $575 million upfront in cash, along with the potential to earn up to $7.2 billion in milestone payments linked to clinical development, regulatory approvals and commercial milestones, as well as tiered royalties on future global sales, according to Reuters.
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ABO2203 represents an application of mRNA technology beyond its better-known use in vaccines. The experimental therapy is being developed for autoimmune diseases including lupus and rheumatoid arthritis, with the aim of using mRNA to help the body's cells produce molecules that direct T cells to identify and eliminate disease-causing B cells.
Unlike existing B-cell therapies that rely on engineered monoclonal antibodies or personalised CAR-T cell treatments, Abogen is developing an in vivo approach, meaning the treatment is designed to work inside the patient's body rather than requiring cells to be extracted and modified outside it.
The deal comes as major Western pharmaceutical companies increasingly turn to Chinese biotech firms for access to drug candidates and technologies. The strategy has gained attention as drugmakers look to replenish their pipelines and address upcoming patent expirations on existing medicines.
For Novartis, the agreement expands its presence in mRNA-based therapeutics and adds an experimental approach to its pipeline of medicines targeting immune-related diseases.
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Founded in 2019, Abogen was previously known for developing mRNA vaccine candidates in China. The Novartis agreement gives the company access to upfront funding as well as potential milestone payments and royalties tied to the development and commercialisation of its therapies.
The transaction remains subject to customary closing conditions and regulatory approvals before it can be completed.
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