Novartis pays up to $1 billion for potential eczema drug

Swiss pharma Novartis is to pay up to $1 billion to Galapagos and MorphoSys for exclusive rights to a skin drug, which will further strengthen Novartis’s leadership position in the immunology field. Belgo-Dutch biotech Galapagos and Germany’s MorphoSys have signed a global license agreement with Novartis for MOR106 to treat atopic dermatitis – also known as eczema. The deal includes a payment of $111 million upfront, with potential milestone payments of approximately $1 billion on top of royalties. The payments will be distributed equally between the two biotechs. Novartis will also cover all future research, development, manufacturing and marketing costs.