Novartis demonstrates commitment to lead immuno-dermatology by in-licensing IL-17C compound for atopic dermatitis

Novartis International AG / Novartis demonstrates commitment to lead immuno-dermatology by in-licensing IL-17C compound for atopic dermatitis . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.

• Novartis enters an exclusive license agreement with Galapagos and MorphoSys for an investigational biologic compound, MOR106, a novel antibody directed against IL-17C

• IL-17C is believed to contribute significantly to atopic dermatitis (AD), a form of eczema and a severe dermatologic condition with high prevalence and significant unmet medical need [1],[2],[3]

• MOR106 is an extension of the Novartis AD pipeline portfolio, which includes oral ZPL389 in phase II, underlining Novartis commitment to immuno-dermatology

Basel, July 19, 2018 - Novartis announced today that it has entered into an exclusive license agreement with biotech companies Galapagos NV, Mechelen (Belgium) and MorphoSys AG, Planegg/Munich (Germany) regarding their compound MOR106. Under the agreement, Novartis acquires the exclusive global development and marketing rights to MOR106 for atopic dermatitis and all other potential indications. Novartis will make an upfront payment of EUR 95 million to Galapagos and MorphoSys, and additional payments, royalties and fees pending achievement of agreed milestones. The closing of the license agreement is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

"We are a leader in immuno-dermatology and committed to reimagining the care of patients with severe diseases such as psoriasis, chronic spontaneous urticaria and atopic dermatitis. There is a key role for biologics to treat these severe diseases, which are more than just skin conditions, as they have complex underlying root causes," said Eric Hughes, Global Development Unit Head, Immunology, Hepatology and Dermatology. "We are pleased to work with Galapagos and MorphoSys who have a proven track record of developing drug candidates for severe inflammatory diseases."