Novartis pays $1bn for Galapagos’ atopic dermatitis therapy

Novartis has announced it has acquired the rights to an atopic dermatitis treatment from Belgium-based Galapagos and Germany-based MorphoSys. The treatment, named MOR106, is a monoclonal antibody still undergoing clinical trials–a Phase II study was started in May 2018, but this has not prevented Novartis from offering up to $1bn. As part of the agreement, Novartis will make a $111m payment in cash, plus an additional $850m subject to fulfillment of precise milestones. Moreover, if the product is marketed, MorphoSys and Galapagos will receive 3% royalties on sales, which could reach $1.5bn pa, experts have said. MOS106 joins Cosentyx, Novartis’ psoriasis treatment, which delivered sales of $701m over the last three months, that is +40% vs Q2 2017.

Investors have welcomed the agreement: indeed, Galapagos’ shares have increased 4%, while Novartis’ have increased over 2%.

(Source: Galapagos)