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Novartis (NVS) Collaborates With BeiGene for Oncology Drug
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Novartis (NVS - Free Report) recently announced that it signed an option, collaboration and license agreement with BeiGene, Ltd. (BGNE - Free Report) for ociperlimab (BGB-A1217).
Ociperlimab is a late-stage TIGIT inhibitor, a novel class of anti-cancer therapies that blocks the TIGIT protein receptor. The candidate is currently being evaluated in two phase III lung cancer trials and additional studies are ongoing in a wide range of solid tumors.
Per the terms, Novartis will make an upfront payment of $300 million to BeiGene. BGNE will earn $700 million if the option is exercised before late 2023. Upon exercising the option, Novartis would obtain the development and commercialization rights to ociperlimab in the United States, Canada, Mexico, the European Union, the United Kingdom, Norway, Iceland, Liechtenstein, Switzerland, Russia and Japan.
Both the companies had earlier collaborated for anti-PD1 antibody tislelizumab whereby BeiGene granted Novartis rights to develop, manufacture and commercialize tislelizumab in North America, Europe and Japan through a collaboration and license agreement.
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 studies.
In addition, both the companies entered into an agreement granting BeiGene rights to market, promote and detail five approved Novartis oncology products, Tafinlar (dabrafenib), Mekinist (trametinib), Votrient (pazopanib), Afinitor (everolimus), and Zykadia (ceritinib), across designated regions of China referred to as "broad markets."
The collaboration will strengthen Novartis’ oncology pipeline.
Concurrently, Novartis’ generic arm Sandoz announced that it submitted its proposed biosimilar trastuzumab (150 mg, for intravenous use) developed by EirGenix, Inc. to the FDA.
As part of the license agreement signed in April 2019, EirGenix, Inc. is responsible for development and manufacturing. Sandoz will have the right to commercialize the medicine upon approval in all markets, excluding China and Taiwan.
Novartis also announced disappointing top-line results from phase III studies, PEARL 1 and PEARL 2, on ligelizumab in chronic spontaneous urticaria (CSU). Data showed that the studies met their primary endpoints of superiority for ligelizumab versus placebo at week 12, but not versus Xolair (omalizumab).
The stock has lost 9.6% in the year so far against the industry’s growth of 18.9%.
Image Source: Zacks Investment Research
With a renewed focus on its core pharmaceutical business, the company is building a pipeline in five core therapeutic areas — cardio-renal, immunology, hepatology & dermatology, neuroscience, oncology and hematology.
NVS’ third-quarter results were mixed. Most of the key brands continue to maintain momentum. However, the Sandoz business continues to be affected by pricing pressures. Hence, management has commenced a strategic review of Sandoz and might separate the business.
Last week, Novartis initiated a share buyback of up to $15 billion to be executed by the end of 2023. The buyback is funded through the proceeds from the recent sale of 53.3 million shares of Roche (RHHBY - Free Report) .
In November, Novartis agreed to sell its 33% stake in Roche for $20.7 billion. Novartis has been a shareholder of Roche since May 2001.
Estimates for Sarepta have narrowed from a loss per share of $6.95 to $4.99 for 2021 and from $4.83 to $3.61 for 2022 in the past 60 days. SRPT delivered an earnings surprise of 11.06%, on average, in the last four quarters.
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Novartis (NVS) Collaborates With BeiGene for Oncology Drug
Novartis (NVS - Free Report) recently announced that it signed an option, collaboration and license agreement with BeiGene, Ltd. (BGNE - Free Report) for ociperlimab (BGB-A1217).
Ociperlimab is a late-stage TIGIT inhibitor, a novel class of anti-cancer therapies that blocks the TIGIT protein receptor. The candidate is currently being evaluated in two phase III lung cancer trials and additional studies are ongoing in a wide range of solid tumors.
Per the terms, Novartis will make an upfront payment of $300 million to BeiGene. BGNE will earn $700 million if the option is exercised before late 2023. Upon exercising the option, Novartis would obtain the development and commercialization rights to ociperlimab in the United States, Canada, Mexico, the European Union, the United Kingdom, Norway, Iceland, Liechtenstein, Switzerland, Russia and Japan.
Both the companies had earlier collaborated for anti-PD1 antibody tislelizumab whereby BeiGene granted Novartis rights to develop, manufacture and commercialize tislelizumab in North America, Europe and Japan through a collaboration and license agreement.
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 studies.
In addition, both the companies entered into an agreement granting BeiGene rights to market, promote and detail five approved Novartis oncology products, Tafinlar (dabrafenib), Mekinist (trametinib), Votrient (pazopanib), Afinitor (everolimus), and Zykadia (ceritinib), across designated regions of China referred to as "broad markets."
The collaboration will strengthen Novartis’ oncology pipeline.
Concurrently, Novartis’ generic arm Sandoz announced that it submitted its proposed biosimilar trastuzumab (150 mg, for intravenous use) developed by EirGenix, Inc. to the FDA.
As part of the license agreement signed in April 2019, EirGenix, Inc. is responsible for development and manufacturing. Sandoz will have the right to commercialize the medicine upon approval in all markets, excluding China and Taiwan.
Novartis also announced disappointing top-line results from phase III studies, PEARL 1 and PEARL 2, on ligelizumab in chronic spontaneous urticaria (CSU). Data showed that the studies met their primary endpoints of superiority for ligelizumab versus placebo at week 12, but not versus Xolair (omalizumab).
The stock has lost 9.6% in the year so far against the industry’s growth of 18.9%.
With a renewed focus on its core pharmaceutical business, the company is building a pipeline in five core therapeutic areas — cardio-renal, immunology, hepatology & dermatology, neuroscience, oncology and hematology.
NVS’ third-quarter results were mixed. Most of the key brands continue to maintain momentum. However, the Sandoz business continues to be affected by pricing pressures. Hence, management has commenced a strategic review of Sandoz and might separate the business.
Last week, Novartis initiated a share buyback of up to $15 billion to be executed by the end of 2023. The buyback is funded through the proceeds from the recent sale of 53.3 million shares of Roche (RHHBY - Free Report) .
In November, Novartis agreed to sell its 33% stake in Roche for $20.7 billion. Novartis has been a shareholder of Roche since May 2001.
Novartis currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Sarepta Therapeutics, Inc. (SRPT - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Sarepta have narrowed from a loss per share of $6.95 to $4.99 for 2021 and from $4.83 to $3.61 for 2022 in the past 60 days. SRPT delivered an earnings surprise of 11.06%, on average, in the last four quarters.