Novartis Buys the Rights to GlaxoSmithKline's Ofatumumab

Novartis (NYSE:NVS) is purchasing the rights to GlaxoSmithKline’s (NYSE:GSK) mid-stage multiple sclerosis treatment, Ofatumumab, for upwards of $1 billion. Novartis hopes that the treatment can become the heir to blockbuster drug Gilenya, which is going to lose patent protection in the near future.
According to the press release:

 Ofatumumab, a fully human monoclonal antibody which targets CD20, is being developed for relapsing remitting multiple sclerosis (RRMS) and other autoimmune indications. Novartis previously acquired the rights to Ofatumumab for oncology indications and it is marketed under the brand name Arzerra®.
RRMS is thought to be associated with activation of B cells, a type of white blood cell in the immune system. Ofatumumab works by binding to the CD20 molecule on the surface of B cells and depleting them in lymphatic tissues. Positive phase IIa results for subcutaneous Ofatumumab demonstrated significant reduction of up to 90% in the cumulative number of new brain lesions in patients with MS between weeks 4-12 in the study. No unexpected safety findings were reported in the study. Since this was a dose finding trial, Ofatumumab is ready to begin phase III pivotal studies.

Click here to read the full press release from Novartis.