By Cecilia Butini

 

Novartis AG said Monday that is has signed an option, collaboration and license agreement with BeiGene Ltd. for the development of an immunotherapy cancer treatment for up to $1 billion.

The Swiss pharma major said, under the terms of the agreement, it would make an upfront payment to BeiGene of $300 million to add a drug, named ociperlimab, to its pipeline. A fee of up to $700 million would also be paid to BeiGene in case the option part of the agreement is exercised before late 2023.

When the option is exercised, Novartis will obtain development and commercialization rights to ociperlimab in the U.S., the European Union, Russia and Japan among others, the company said. BeiGene will retain the rights connected to the drug in China, though the two companies have agreed for BeiGene to promote a select number of Novartis's oncology products in the country, Novartis said.

Ociperlimab is currently being studied in Phase 3 trials for advanced non-small cell lung cancer, and its development goes together with Novartis's tislelizumab, the company said.

"During the option period, Novartis and BeiGene will collaborate on the clinical development of ociperlimab in combination with tislelizumab, with Novartis designing, sponsoring, conducting, and funding global combination clinical trials," Novartis said.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

December 20, 2021 06:54 ET (11:54 GMT)

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