Novartis signs $7.8 billion Abogen biotech licensing deal
Novartis has entered into a $7.8 billion licensing agreement with Chinese biotech firm Abogen Biosciences to access experimental mRNA treatments for autoimmune diseases. This deal reflects a growing trend of Western pharmaceutical companies partnering with Chinese firms to accelerate drug development and combat patent cliffs.
Why it matters
The deal underscores the strategic importance of Chinese biotech innovation in the global pharmaceutical market and the shift toward licensing models to mitigate R&D risks.
Novartis has signed a deal worth up to $7.8 billion, in the latest of a flurry of tie-ups between Big Pharma and Chinese biotechs.
The Swiss pharma major is entering a licensing agreement with China-based Abogen Biosciences for its lead asset, an early-stage experimental treatment for autoimmune disease, Abogen said in a statement on Friday.
China offers Western biopharma companies hopes of finding their next blockbuster drug, as patents on top-selling drugs, which generate hundreds of billions in sales, face a "patent cliff" in the early 2030s.
Novartis' normally stable shares fell last month by the most since 1987 following several clinical trial setbacks , raising questions about its ability to develop and source new drugs to offset the looming patent expirations.
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