Novartis AG (ADR) (NYSE:NVS) recently decided to acquire the rights to an investigational multiple sclerosis medicine for up to $1 billion from GlaxoSmithKline plc (ADR) (NYSE:GSK), as it is tries to get closer to Roche Holding AG, which is developing a competing drug.
The Switzerland-based company reported on Friday that it will give an upfront payment of $300 million to GlaxoSmithKline for ofatumumab. Afterwards it will pay another $200 million following the beginning of late-stage clinical studies. Novartis might pay an additional $534 million if certain objectives are met during the development of the treatment.
The drug would face competition from Roche’s investigational treatment ocrelizumab, which was effective in decreasing the relapses and disability progression linked with multiple sclerosis in late-stage trials revealed in June. An analyst at Kepler Cheuvreux, Fabian Wenner said the treatment might hit the market in 2017, whereas the Novartis medicine would reach the market at least two years after that.
Wenner said in an interview that Patients either look for better convenience as compared to previous treatments or they want better effectiveness, and ofatumumab isn’t offering any of those things.
Over 2.3 million individuals suffer from multiple sclerosis, which is a progressive disorder in the central nervous system that disturbs the functions of brain and spinal-cord. Ofatumumab and ocrelizumab hit a kind of white blood cell present in the immune system that plays a key role in damaging spinal-cord.
NVS drug is a completely-human antibody, which is unlikely to cause undesirable immune reactions as compared to Roche’s treatment, which originates from an animal and altered to look like a human antibody, according to Novartis.
Ofatumumab might also offer enhanced safety and tolerability, because it is a minor dose given every month under the skin, versus Roche’s infusion that is delivered after every 6 months, Novartis said in a statement.
