Novartis Inks Option Agreement For BeiGene Anti-Cancer Therapy For Over $1B

BeiGene Ltd BGNE announced an option, collaboration, and license agreement with Novartis AG NVS to develop, manufacture, and commercialize BeiGene's ociperlimab in North America, Europe, and Japan. 

• Ociperlimab is currently being investigated in two global Phase 3 trials, the AdvanTIG-301 and AdvanTIG-302 trials, combined with tislelizumab in lung cancer. 
• Novartis will make an upfront payment to BeiGene of $300 million and pay a fee of up to $700 million if the option is exercised before late 2023 for ociperlimab.
• In addition, following the option exercise, BeiGene is eligible to receive up to $745 million as regulatory approval milestones, $1.15 billion as sales milestones.
• Novartis will initiate and fund additional global clinical trials with ociperlimab, and BeiGene has agreed to expand enrollment in two ongoing trials. 
• Additionally, Novartis has agreed to share the development costs of global trials following the option exercise. 
• In addition, Novartis has granted BeiGene rights to market, promote five approved oncology products, Tafinlar (dabrafenib), Mekinist (trametinib), Votrient (pazopanib), Afinitor (everolimus), and Zykadia (ceritinib), across designated regions of China referred to as "broad markets."
• Price Action: NVS shares are down 0.51% at $85.46, BGNE stock is up 4.30% at $285.48 during the premarket session on the last check Monday.