Novartis secures global rights to atopic dermatitis drug MOR106

In a strategic move to bolster its dermatology portfolio, Swiss pharmaceutical giant Novartis has entered into an agreement with MorphoSys and Galapagos to acquire exclusive global development and marketing rights for the atopic dermatitis drug, MOR106. This deal, potentially worth up to $1.1 billion, underscores Novartis’ commitment to advancing care in immuno-dermatology.

Under the terms of the agreement, Novartis will make an upfront payment of €95 million ($111 million) to MorphoSys and Galapagos. Additionally, the deal includes potential milestone payments that could total nearly €850 million ($1 billion), along with royalties ranging from low-teens to low-twenties percentage. This acquisition not only enhances Novartis’ competitive position but also supports a broader development plan for MOR106, significantly expanding its potential applications beyond atopic dermatitis.

MOR106, an IgG1 monoclonal antibody, targets the Interleukin 17C (IL-17C) protein, a novel approach in the treatment of atopic dermatitis. Developed jointly by German biotech firm MorphoSys and the Belgo-Dutch company Galapagos, MOR106 has shown promising results in Phase Ib studies, demonstrating initial efficacy and a favorable safety profile.

Dr. Simon Moroney, CEO of MorphoSys, expressed enthusiasm about the collaboration: “This collaboration with Novartis will enable us to accelerate and broaden the development of MOR106 beyond our current focus on atopic dermatitis and to exploit the potential of MOR106 to the maximum. We are also very pleased that we can further strengthen our engagement in atopic dermatitis by starting additional trials together with Galapagos, which will be fully reimbursed by Novartis.”

Eric Hughes, Global Development Unit Head, Immunology, Hepatology and Dermatology at Novartis, highlighted the strategic importance of this acquisition: “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.”

The closure of this significant licensing agreement is contingent upon clearance by US antitrust authorities under the Hart-Scott-Rodino Act. With this clearance, Novartis plans to integrate MOR106 into its renowned product lineup, which includes other successful treatments like Cosentyx and Xolair, further solidifying its leadership in the field.