BioArctic gains 7.5% after Novartis collaboration deal

BioArctic gains 7.5% after Novartis collaboration deal

Stockholm, Sweden — BioArctic AB (publ) (Nasdaq Stockholm: BIOA B) experienced a 7.5% increase in its stock price following the announcement of a significant collaboration and licensing agreement with Novartis Pharma AG. The agreement, announced on August 26, 2025, involves the use of BioArctic's proprietary BrainTransporter technology in a potential new treatment for neurodegeneration [1].

As part of the initial research collaboration, BioArctic will receive an upfront payment of USD 30 million. If Novartis decides to exercise their option to license any drug candidate generated, BioArctic could receive additional payments of up to USD 772 million. Additionally, BioArctic will be entitled to tiered mid-single digit royalties on future global product sales if the product reaches the market [1].

The agreement is the third collaboration BioArctic has entered into with partners using the BrainTransporter technology. This versatile platform has the potential to improve many different projects, both internally and externally generated, and could support companies across the field in their pursuit of helping people with brain disorders [1].

The BrainTransporter technology facilitates the passage of biological drugs into the brain using the transferrin receptor (TfR). This can result in broader brain distribution, enabling better efficacy, improved safety profile, and dosing convenience. The technology is being applied to several in-house drug projects and could become part of future collaborations with other pharmaceutical companies [1].

The collaboration between BioArctic and Novartis underscores the potential of the BrainTransporter technology to advance the development of innovative therapies for severe neurological conditions. This agreement is part of BioArctic's broader research portfolio, which includes projects against Alzheimer's disease, Parkinson's disease, and ALS [1].

References:
[1] https://www.morningstar.com/news/pr-newswire/20250826io59019/bioarctic-and-novartis-sign-an-option-collaboration-and-license-agreement-using-braintransporter-for-an-upfront-payment-of-usd-30-million-plus-additional-potential-milestones-and-royalties