BioArctic AB has announced a strategic partnership with Novartis Pharma AG to develop new treatments for neurodegeneration using BioArctic's proprietary BrainTransporter technology. The collaboration includes an option, collaboration and license agreement targeting an undisclosed neurodegeneration indication, with BioArctic receiving an upfront payment of $30 million.
Partnership Structure and Financial Terms
Under the agreement, BioArctic will initially generate a new drug candidate by combining its BrainTransporter technology with a Novartis proprietary antibody. Following evaluation of the generated data, Novartis will decide whether to exercise its option to license the drug candidate. If the option is exercised, BioArctic becomes eligible for additional milestone payments totaling up to $772 million, plus tiered mid-single digit royalties on future global product sales.
Should Novartis proceed with licensing, the company will assume full responsibility for global development and commercialization of the drug candidate and related products. This structure allows BioArctic to leverage its innovative delivery platform while benefiting from Novartis's extensive development and commercial capabilities in neurology.
BrainTransporter Technology Platform
The BrainTransporter technology represents a novel approach to addressing one of the most significant challenges in neurological drug development: crossing the blood-brain barrier. The platform is designed to promote brain uptake and optimize systemic delivery of therapeutic agents by leveraging the biology of the blood-brain barrier.
"Collaborating with BioArctic allows us to explore the exciting potential of the BrainTransporter technology to promote brain uptake and optimize systemic delivery of novel therapeutic agents by leveraging the biology of the blood-brain barrier," said Sophie Parmentier Batteur, Head of Neurodegeneration Research at Novartis. "Our focus is to pioneer innovative therapies that improve treatment outcomes by impacting disease progression, to provide meaningful therapies for patients with severe neurological conditions."
Strategic Significance and Platform Validation
This agreement marks the third collaboration BioArctic has established using its BrainTransporter technology, demonstrating growing industry recognition of the platform's potential. The versatility of the technology allows for applications across different therapy areas for delivery of biologics and other modalities.
"With yet another BrainTransporter agreement it is becoming evident that this versatile platform has huge potential to improve many different projects, internally as well as externally generated, and could support companies across the field in their pursuit of helping people with brain disorders," said Gunilla Osswald, CEO at BioArctic.
BioArctic retains all rights for use of the BrainTransporter platform outside the scope of its three existing partnerships, providing the company with continued opportunities for future collaborations. The platform's ability to enhance brain delivery of therapeutic agents positions it as a valuable tool for addressing the significant unmet medical needs in neurological disorders.
The partnership combines Novartis's commitment to advancing treatments for devastating nervous system disorders with BioArctic's innovative delivery technology, potentially creating new therapeutic options for patients with severe neurological conditions.
