21 December 2015, London – GlaxoSmithKline plc (LSE/NYSE: GSK) today announced the completion of its transaction to divest its rights to ofatumumab for auto-immune indications to Novartis Pharma AG (“Novartis Pharma”), a subsidiary of Novartis AG, following regulatory approval.
The consideration payable by Novartis Pharma to GSK may reach up to $1,034 million and comprises a series of milestone payments as follows:
- $300 million paid at closing
- $200 million payable subject to the start of a phase III study in relapsing remitting multiple sclerosis by Novartis
further contingent payments of up to $534 million payable on the achievement of certain other development milestones
- Novartis Pharma will also pay royalties of up to 12 per cent to GSK on any future net sales of ofatumumab in auto-immune indications.
Income generated from the divestment will be treated as non-core in line with the accounting policies outlined in the third quarter financial results announcement of 28 October 2015.
GSK – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit our about us section.