BoomRay Pharmaceuticals has entered an exclusive global license agreement with Novartis Pharma AG for an undisclosed preclinical radioligand therapy asset, with BoomRay eligible to receive up to $900 million in payments plus royalties on potential future sales.
The agreement includes an upfront payment and development, regulatory and sales-based milestone payments. The companies did not disclose the size of the upfront payment, the allocation of potential milestone payments or royalty rates.
Novartis will obtain exclusive global rights to the undisclosed asset. The companies did not identify the therapy’s target, cancer indication, modality details, development history or the timing of potential clinical studies.
Radioligand therapies combine a targeting molecule with a radioactive payload intended to deliver radiation to cancer cells. The treatment approach is used in precision oncology and requires specialized development, manufacturing and distribution capabilities.
BoomRay, based in Suzhou, China, is a clinical-stage biotechnology company focused on radioligand therapies for oncology diagnostics and therapeutics. The transaction provides Novartis with an additional preclinical program in the radioligand therapy field.
Novartis said the agreement is part of its approach to combine externally sourced programs with its internal oncology research and development operations. The Swiss pharmaceutical company has been expanding its radioligand therapy activities through internal development and business-development transactions.
The agreement gives BoomRay the potential to receive payments as the asset progresses through development, regulatory review and commercial milestones. Royalties would be payable on global net sales if a resulting product reaches the market.
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