BioArctic signs $30 million deal with Novartis for brain drug delivery tech

STOCKHOLM - BioArctic AB (Nasdaq Stockholm:BIOA B), a pharmaceutical company with a market capitalization of $44.9 billion and an "GREAT" financial health rating according to InvestingPro, has entered into an option, collaboration and license agreement with Novartis Pharma AG for a potential new neurodegeneration treatment using BioArctic’s BrainTransporter technology, according to a press release issued Tuesday.

Under the agreement, BioArctic will receive an upfront payment of $30 million for the initial research collaboration. The company could receive up to an additional $772 million if Novartis exercises its option to license any drug candidate developed during the collaboration, plus tiered mid-single digit royalties on future global sales.

The collaboration will focus on combining BioArctic’s BrainTransporter technology with a Novartis proprietary antibody targeting an undisclosed neurodegeneration pathway. If Novartis exercises its option after evaluating the drug candidate, it will assume full responsibility for global development and commercialization.

"Novartis shares our passion for science and helping patients with severe neurological disorders," said Gunilla Osswald, CEO at BioArctic, in the announcement. The company’s stock has shown remarkable performance, with a 71.41% return year-to-date and is currently trading near its 52-week high. InvestingPro analysis reveals 15+ additional key insights about BioArctic’s financial health and market position.

Sophie Parmentier Batteur, Head of Neurodegeneration Research at Novartis, stated that the collaboration would explore the potential of BrainTransporter technology to "promote brain uptake and optimize systemic delivery of novel therapeutic agents by leveraging the biology of the blood-brain barrier."

This marks the third partnership agreement for BioArctic’s BrainTransporter platform, which is designed to facilitate the passage of biological drugs across the blood-brain barrier. The company retains all rights to the technology outside the scope of these three agreements.

BioArctic’s BrainTransporter technology aims to improve efficacy and safety profiles of neurological treatments by enabling broader brain distribution of biotherapeutics.

In other recent news, Barrick Mining reported its second-quarter financial results, with adjusted earnings per share slightly surpassing expectations at $0.47, compared to the consensus estimate of $0.46. The company also generated $395 million in free cash flow, aligning closely with analyst projections. Additionally, Barrick declared a quarterly dividend of $0.15 per share, continuing its share buyback program. The company announced the appointment of Ben van Beurden, former CEO of Shell, as the Lead Independent Director of the Board. Analyst firms have reacted to these developments, with Jefferies raising its price target for Barrick Mining to $30.00, maintaining a Buy rating. Scotiabank also increased its price target to $26.00, citing potential value from the Fourmile deposit. Meanwhile, Barrick’s CEO, Mark Bristow, commented that possible U.S. tariffs on gold bars would have minimal impact on the company. These updates highlight Barrick Mining’s ongoing strategic initiatives and financial performance.

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