Novartis Commits $30 Million to BioArctic in BrainTransporter Licensing Pact, Expands Neuroscience Portfolio

Novartis AG has committed $30 million to BioArctic under a licensing pact for the BrainTransporter program. The pact will enable further development of the program, which aims to transport drugs across the blood-brain barrier for the treatment of neurological disorders. Novartis is one of the world's leaders in pharmaceutical products, with a presence in oncology, immunology, cardiovascular, renal, and metabolic diseases, neuroscience, and contract manufacturing.

Stockholm, Sweden, July 02, 2025 - BioArctic AB (publ) (Nasdaq Stockholm: BIOA B) has announced a significant milestone in its partnership with Novartis AG. The two companies have entered into an option, collaboration, and license agreement for the BrainTransporter program, with Novartis committing an upfront payment of USD 30 million. This agreement aims to advance the development of treatments that can transport drugs across the blood-brain barrier, targeting neurological disorders.

The BrainTransporter technology, developed by BioArctic, facilitates the passage of biological drugs, such as antibodies, into the brain. The collaboration with Novartis will involve BioArctic generating a new drug candidate using the BrainTransporter technology in combination with a Novartis proprietary antibody. If Novartis decides to exercise its option following the evaluation of the generated drug candidate, it will assume full responsibility for the global development and commercialization of the drug candidate and related products.

Under the terms of the agreement, BioArctic will receive additional payments of up to USD 772 million if Novartis exercises its option. Additionally, BioArctic will be entitled to tiered mid-single digit royalties on future global product sales if the product reaches the market. This is the third collaboration BioArctic has entered into with partners using the BrainTransporter technology, further highlighting its potential in various therapy areas for the delivery of biologics and other modalities.

Gunilla Osswald, CEO at BioArctic, expressed her excitement about the agreement, stating, "Novartis shares our passion for science and helping patients with severe neurological disorders. With yet another BrainTransporter agreement, it is becoming evident that this versatile platform has huge 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."

Sophie Parmentier Batteur, Head of Neurodegeneration Research at Novartis, added, "At Novartis, we are deeply committed to advancing science to help discover treatments for devastating nervous system disorders. Collaborating with BioArctic allows us to explore the exciting potential of the BrainTransporter technology to promote brain uptake and optimize systemic delivery of novel therapeutic agents by leveraging the biology of the blood-brain barrier. Our focus is to pioneer innovative therapies that improve treatment outcomes by impacting disease progression, to provide meaningful therapies for patients with severe neurological conditions."

This agreement is part of BioArctic's broader research portfolio, which includes antibodies against Parkinson's disease and ALS, as well as additional projects against Alzheimer's disease. The BrainTransporter technology has the potential to enhance the efficacy of treatments by actively transporting antibodies across the blood-brain barrier.

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
[2] https://www.prnewswire.co.uk/news-releases/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-302538447.html