GSK Divests Rights for Ofatumumab to Novartis for up to $1 Billion
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GlaxoSmithKline (GSK) has completed its transaction to divest its rights to ofatumumab for auto-immune indications to Novartis Pharma AG, a subsidiary of Novartis AG, following regulatory approval. The consideration payable by Novartis Pharma to GSK may reach up to $1.034 billion and comprises a series of milestone payments as follows: $300 million paid at closing; $200 million payable subject to the start of a Phase III study in relapsing remitting multiple sclerosis by Novartis; and further contingent payments of up to $534 million payable on the achievement of certain other development milestones.

Novartis Pharma will also pay royalties of up to 12% to GSK on any future net sales of ofatumumab in auto-immune indications.

Source: GlaxoSmithKline

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