Novartis has agreed to license Abogen Biosciences’ experimental mRNA-encoded T-cell engager ABO2203 and secured options on additional RNA-based programs in a deal that could be worth up to about $7.8 billion.
Abogen will receive $575 million upfront. If Novartis exercises all program options, Abogen could receive up to approximately $7.2 billion in development, regulatory and commercial milestone payments, plus potential royalties on future product sales. The transaction remains subject to customary closing conditions and required regulatory clearances.
ABO2203 is an mRNA-encoded CD19xCD3 T-cell engager being studied for autoimmune diseases. The treatment is designed to direct the body to produce a molecule that brings T cells into contact with B cells expressing CD19, with the goal of depleting B cells.
Abogen said ABO2203 is the first mRNA-encoded T-cell engager to enter clinical evaluation for autoimmune diseases. The program uses mRNA to enable production of the T-cell engager inside the body, rather than administering a conventionally manufactured recombinant protein.
Under the agreement, Novartis receives an exclusive worldwide license to ABO2203. The Swiss drugmaker also has exclusive options to license additional therapeutic candidates developed using Abogen’s RNA platform.
Abogen, headquartered in Suzhou, China, is a clinical-stage biotechnology company developing RNA-based medicines. Novartis will advance the licensed program as it explores mRNA-encoded T-cell engagers as a potential approach for autoimmune conditions.
The agreement covers the lead asset and a group of potential follow-on programs. Payments beyond the upfront fee depend on Novartis exercising the options and the programs achieving specified development, regulatory and commercial milestones.
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