Novartis acquires all rights to GlaxoSmithKline’s ofatumumab

Novartis has announced the purchase of all remaining rights to ofatumumab, the fully human CD20-targeting monoclonal antibody developed by GlaxoSmithKline.

Previously, the company acquired rights to the drug in its oncology indications only. It is marketed as a cancer therapy under the brand name Arzerra.

With this new deal, Novartis will be responsible for all worldwide development, regulatory and commercialisation activities for ofatumumab, which the company wishes to develop as a treatment for relapsing remitting multiple sclerosis (MS) and other autoimmune indications.

An initial upfront payment of $300 million (191.28 million pounds) will be made to GlaxoSmithKline, with a further fee of $200 million to be made payable following the start of phase III MS trials. Upon completion of pre-determined milestones, contingent payments of up to $534 million may also be made.

David Epstein, head of Novartis Pharmaceuticals, said: "Our vision for patients with MS is to develop treatments that improve on current standards of care, meeting patients' needs at every stage of their disease with innovative and targeted drugs."

This comes after Novartis purchased GlaxoSmithKline's entire oncology business earlier this year.