Argo announces new strategic collaboration with Novartis

Argo Biopharmaceutical announced that it has entered into an additional strategic collaboration with Novartis (NVS) for multiple cardiovascular assets in Argo’s pipeline. The new agreements are in addition to the existing collaboration between the two companies and comprise their third transaction including assets from Argo’s pipeline. This most recent collaboration between Argo and Novartis includes: An option granted to Novartis to license ex-China rights to two discovery-stage next generation molecules for the treatment of severe hypertriglyceridemia and mixed dyslipidemia and a right of first negotiation to BW-00112, which is currently in Phase II in the U.S. and China, following a combination trial conducted by Argo; License with reciprocal options to share in Profit & Loss in the U.S. and China for an additional hepatic-delivered siRNA candidate currently in IND-enabling studies and expected to commence a multi-territorial Phase I in 2026. Novartis to receive an ex-China license to the molecule along with a P&L option in China while Argo to receive a P&L option in the U.S. Under the terms of the agreement, Argo will receive an upfront payment of $160M and is eligible to receive potential milestone and option payments of a combined potential value of up to $5.2B, as well as tiered royalties on commercial sales. In addition, Novartis has expressed its non-binding intention to participate in Argo’s next round of equity financing. Such participation remains subject to customary due diligence, negotiation of and entry into definitive documentation. BofA Securities served as financial advisor to Argo Biopharma on this transaction.