China-based biotechnology company Argo Biopharma and Swiss pharmaceutical major Novartis have expanded their partnership to develop novel therapeutics for cardiovascular diseases.
The expanded partnership includes licensing and option agreements for Argo’s cardiovascular assets, focusing on small interfering RNA (siRNA) therapeutics.
Under the terms of the deal, Argo will explore its ANGPTL3 candidate in a combination trial for dyslipidemia and will receive $160m in upfront payment.
The agreement values potential payments to Argo at up to $5.2bn, including milestone and option payments, alongside tiered royalties on future sales.
Novartis obtains the option to license rights to two next-generation molecules for severe hypertriglyceridemia (sHTG) and mixed dyslipidemia, excluding China.
Also, the Swiss drugmaker will have the right of first negotiation for Argo’s ANGPTL3, which is currently in Phase 2 development in the US and China.
The deal also involves licensing of Argo’s siRNA candidate, anticipated to begin Phase 1 trials in multiple regions by 2026.
Argo co-founder, board chairman and CEO Dongxu Shu said: “We are thrilled to deepen our collaboration with Novartis, a global leader in Cardiovascular, Renal and Metabolic areas.
“This new collaboration further supports the innovation engine Argo has built to deliver best-in-class siRNA therapeutics while building a top-tier clinical development team across multiple geographies.
“Argo’s ambition is to become a global biotech, and corporate development activities are an important component to expand the reach of our hepatic and ex-hepatic siRNA therapeutics.”
The expanded collaboration also features reciprocal options, where Argo and Novartis will share profits and losses in the US and China.
Novartis gains an ex-China license, while Argo retains a profit and loss (P&L) option in the US, reinforcing their strategic cooperation in these territories.
In January last year, Argo and Novartis entered an initial partnership, worth $185m upfront payments, along with $4bn milestone payments and royalties.
Novartis has also shown interest in participating in Argo’s upcoming equity financing round, subject to customary due diligence and negotiations.
Novartis Biomedical Research cardiovascular and metabolism global head Shaun Coughlin said: “Long-acting siRNAs, which are designed to deeply and durably target disease-causing proteins, represent an important paradigm shift in prevention and treatment of cardiovascular diseases.
“We are excited to build on our work with Argo through these new agreements, which include additional molecules.
“Novartis is committed to advancing innovative treatments for patients with cardiovascular conditions, and our collaboration with Argo further strengthens our efforts to advance potential new therapies that address unmet medical needs.”
Recently, Arrowhead Pharmaceuticals also signed a global licensing and collaboration agreement with Novartis for developing its preclinical siRNA therapy.
