BeiGene Regains Full Global Rights to Tislelizumab Following Mutual Termination of Collaboration Agreement with Novartis

Zhitong Finance APP reported that BeOne Medicines (688235.SH) announced on January 11, 2021, its wholly-owned indirect subsidiary, BeOne Medicines Switzerland, entered into a "Collaboration and License Agreement" with Novartis AG ("Novartis"). According to the license agreement, BeOne Medicines Switzerland granted Novartis the rights to develop, manufacture, and commercialize tislelizumab in the United States, Canada, Mexico, EU member states, the United Kingdom, Norway, Switzerland, Iceland, Liechtenstein, Russia, and Japan.

Based on strategic considerations beneficial to both parties and through mutual consultation, BeOne Medicines Switzerland and Novartis signed the "Mutual Termination and Release Agreement" on September 18, 2023 (Beijing Time) to jointly terminate the licensing agreement. The agreement took immediate effect upon signing. After the agreement became effective, BeOne Medicines Switzerland regained full global rights to develop, manufacture, and commercialize tislelizumab without any royalty payments.

It is reported that Novartis can continue to carry out ongoing clinical trials, and in the future, other combination trials of tislelizumab may be conducted with the company’s consent. The company agrees to continue providing Novartis with tislelizumab for clinical trials to support their implementation. According to the agreement, Novartis will provide transitional services to ensure the smooth progress of key matters in the development and commercialization plan of tislelizumab, including support in production, regulatory submissions, drug safety, and clinical matters.

The announcement shows that the termination will not affect the $650 million cash upfront payment BeOne Medicines Switzerland has already received from Novartis, nor will it have a material adverse effect on the company's financial and operating conditions.