Novartis to License Drug From China's Abogen in Up to $7.8 Billion Deal — Update

By Adria Calatayud

Novartis struck a deal valued at up to $7.8 billion to license a messenger RNA drug candidate from Abogen Biosciences and gain options over future therapies, turning to China to fill its pipeline.

Many of the world's biggest drugmakers have set their sights on China to look for new drug ideas, seeking to bolster their portfolios in preparation for older medicines going off patent. Novartis has sealed several tie-ups with emerging Chinese biotech players in recent years.

Novartis is paying $575 million upfront and could make additional payments of up to $7.2 billion if options on all programs are exercised and targets are met, Abogen said Friday.

Under the deal, Novartis will acquire worldwide rights over Abogen's lead drug candidate, called ABO2203, which uses mRNA to boost the production of so-called T-cell engagers within the body to fight malignant cells. Abogen said its lead drug has potential to transform the treatment landscape for patients with autoimmune diseases--those in which the body's immune system attacks healthy cells instead of protecting them.

"Achieving effective and durable immune reset remains an important goal across a number of autoimmune diseases," Novartis's president of biomedical research, Fiona Marshall, said.

Abogen Chief Executive Bo Ying said the agreement with Novartis would allow the company to speed up the development of its lead asset and unlock new therapeutic targets, while underscoring the potential of its RNA platform to expand beyond vaccines.

The deal also gives Novartis an exclusive option to license other next-generation therapeutic assets developed on Abogen's RNA platform, the Chinese company said.

The agreement with Abogen is the latest in a series of deals Novartis has reached in China lately.

The Swiss company reached separate agreements to license cancer treatments known as radioligand therapies from Boomray Pharmaceuticals last week and from Zonsen PepLib Biotech in January. Last year, it entered into a cardiovascular collaboration with Argo Biopharma with a value that could exceed $5 billion subject to hitting targets.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

October 02, 2026 08:15 ET (12:15 GMT)