Argo Biopharmaceutical Co., a pioneering biotechnology company focused on RNA-based medicines, today announced it has entered into a strategic partnership with Novartis valued at up to $5.2 billion. The collaboration aims to advance multiple treatments for cardiovascular and blood vessel conditions.
Under the terms of the agreement, Novartis has the option to develop two early-stage therapies for high triglycerides and other lipid disorders outside of China. Additionally, Novartis may negotiate rights to Argo’s Phase II candidate, BW-00112, following planned combination trials in both the U.S. and China. The companies have also agreed to share rights to another therapy currently in early development.
Argo will receive $160 million upfront and could earn up to $5.2 billion if the therapies meet development and sales milestones. The company will also benefit from royalties on commercial sales, and Novartis has expressed interest in participating in Argo’s upcoming fundraising round.
Argo specializes in siRNA-based therapies, a form of RNA medicine designed to target disease-causing proteins. These therapies hold promise for treating high cholesterol, viral infections, and certain rare diseases.
“We are thrilled to deepen our collaboration with Novartis, a global leader in cardiovascular, renal, and metabolic therapies,” said Dr. Dongxu Shu, co-founder, chair, and CEO of Argo. “This partnership further strengthens Argo’s innovation engine to deliver best-in-class siRNA therapeutics.”
Novartis will lead development outside of China, while Argo retains the option to share profits in the U.S., and Novartis will hold a similar profit-sharing option in China.
Shaun Coughlin, global head of cardiovascular research at Novartis, added, “Long-acting siRNAs, designed to durably target disease-causing proteins, represent an important paradigm shift in the prevention and treatment of cardiovascular diseases. Our collaboration with Argo advances innovative therapies for patients with unmet medical needs.”
Heart disease remains a leading cause of death globally, accounting for approximately one-third of fatalities in 2021. Argo is currently testing six new therapies targeting heart, metabolic, viral, and rare diseases. BofA Securities served as Argo’s financial adviser for this transaction.
