GlaxoSmithKline divests ofatumumab rights to Novartis

GlaxoSmithKline has completed the divestment of its rights to ofatumumab for autoimmune indications to Novartis.

Novartis will pay up to $1.034 billion (700.01 million pounds) to GlaxoSmithKline via a series of milestone-based payments, and will also pay royalties of up to 12 percent on any future net sales of ofatumumab in autoimmune indications.

This comes as part of the company's strategy to focus on core therapy areas including HIV, oncology, vaccines, cardiovascular, immuno-inflammation and respiratory diseases.

Additionally, GlaxoSmithKline's global HIV business ViiV Healthcare recently reached two separate agreements with Bristol-Myers Squibb, allowing it to acquire the latter's late-stage HIV research and development assets.

It will also be purchasing Bristol-Myers Squibb's portfolio of preclinical and discovery-stage HIV research assets as part of this transaction.

David Redfern, chief strategy officer at GlaxoSmithKline and chairman of ViiV Healthcare, said: "The addition of two potential first-in-class late-stage treatments and several promising early clinical development programmes strengthens ViiV Healthcare's pipeline and provides us with further new opportunities for growth."