Novartis Buys Exclusive Rights To IL-17C Compound MOR106 For Atopic Dermatitis

(RTTNews) - Swiss drug major Novartis AG (NVS) announced Thursday that it has entered into an exclusive license agreement with biotech companies Galapagos NV (GLPGF.PK) in Belgium and MorphoSys AG (MOR, MPSYY.PK), in Germany for their investigational biologic compound, MOR106, a novel antibody directed against IL-17C.

Under the agreement, Novartis acquires the exclusive global development and marketing rights to MOR106 for atopic dermatitis or AD and all other potential indications. Novartis will make an upfront payment of 95 million euros 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.

IL-17C is believed to contribute significantly to AD, a form of eczema and a severe dermatologic condition with high prevalence and significant unmet medical need.

MOR106 is a monoclonal antibody directed against IL-17C. MOR106 is an extension of the Novartis AD portfolio, which includes oral ZPL389 in phase II. MOR106 has demonstrated first signs of efficacy and was generally safe and well tolerated in a double blind placebo-controlled Phase Ib study.

MOR106 is a potentially first in class anti-IL-17C monoclonal antibody for AD and possibly other diseases.