Argo Biopharma and Novartis Announce $4.165 Billion Collaboration in Landmark RNA Therapeutics Deal

On January 7, Argo Biopharma announced that it had entered into two exclusive license and collaboration agreements with Novartis.

Image Source: Argo Biopharma Official Website

Under the first agreement, Novartis has obtained the global exclusive license rights to develop and commercialize a Phase 1 project from Argo Biopharma. In addition, Novartis will also receive potential licensing options for up to two additional targets of compounds targeting cardiovascular diseases.

Under the second agreement, Argo granted Novartis an exclusive license outside of Greater China to develop and commercialize a Phase 1/2a clinical program for the treatment of cardiovascular diseases.

How Argo Biopharma Secured a $4.165 Billion Mega Deal

According to the agreement, Argo Biopharma will receive an upfront payment of $185 million from Novartis and is eligible for potential option fees, milestone payments, and tiered royalties on commercial sales. The total potential value of the two deals could reach up to $4.165 billion. This figure represents the highest disclosed Licence-out transaction amount since the beginning of 2024, and the upfront payment alone ranks among the top 10 outbound transactions by Chinese pharmaceutical companies.

Argo Biopharma was founded in April 2021, focusing on the development of siRNA drugs, and was established by several scientists with extensive experience in siRNA drug development. The company is committed to developing a new generation of siRNA drugs to provide urgently needed and better treatment options for patients worldwide. It is reported that the Argo team has many years of professional experience in all aspects of RNAi drug development, including nucleic acid sequence design, chemical modification, GalNAc delivery technology, extrahepatic tissue-targeted delivery technology, oligonucleotide synthesis, and CMC. A complete nucleic acid drug development platform has already been established at Argo.

Despite being established for less than three years, Argo Biopharma already has four pipelines in clinical stages, one pipeline about to enter clinical trials, and multiple pipelines with confirmed PCC. The therapeutic areas cover cardiovascular diseases, rare diseases, hepatitis B, autoimmune conditions, and neurological disorders. Clinical approvals have been obtained in various regions, including China, the United States, and Australia.

Figure: Argo Product Pipeline

Image Source: Argo Biopharma Official Website

Among them, BW-01 and BW-02 in the cardiovascular field have entered the clinical stage and are likely to be the core products of this authorization.

Novartis Invests Heavily in Argo, a Company Established for Less Than Three Years, Showing Strong Confidence in Argo’s Nucleic Acid Drug Development Platform and Core Products.

The Wave of Small Nucleic Acid Drug Deals Begins to Surge

siRNA drugs are an emerging new technology drug in recent years, with the advantages of multiple druggable targets, strong efficacy, good safety, and low dosing frequency. Their indications cover a wide range of fields, including cardiovascular diseases, rare diseases, neurological disorders, viral hepatitis, ophthalmic diseases, cancer, and other disease areas, making them one of the most promising frontier pharmaceutical fields globally.

In addition to Novartis, the foreign company heavily investing in small nucleic acid drugs is Germany's Boehringer Ingelheim. Both companies have chosen to "import" from Chinese Biotechs.

On January 3, Boehringer Ingelheim announced a collaboration with Suzhou Ribo Life Science to jointly develop innovative small nucleic acid therapies for the treatment of non-alcoholic or metabolic dysfunction-associated steatohepatitis (NASH/MASH). This collaboration will closely integrate Ribo's leading expertise in early research and clinical development in the siRNA drug field with Boehringer Ingelheim's commitment to improving the quality of life for patients with cardiovascular, renal, and metabolic diseases (CRM).

According to the terms of the collaboration, Ribo Biotech will receive an upfront payment and is entitled to receive milestone payments based on the progress of clinical studies, regulatory submissions, and commercial success as well as tiered royalties on future product sales. The total value of the deal could exceed 20 billion US dollars.

Summary

This time, Argo's small nucleic acid therapy going overseas has not only driven a new wave of overseas expansion for China's Biotech innovative drugs in 2024, but also indicated that multinational corporations (MNCs) are turning their attention to domestic small nucleic acid enterprises. These collaborations involve large transactions, marking the beginning of a "blockbuster BD era" for small nucleic acids in China.

Source: Argo Biopharma's official website

Editor: Pea Shooter

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