GlaxoSmithKline Plc 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: $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.
