Topline Findings
- Novartis–BioArctic collaboration: The agreement centers on applying BioArctic’s BrainTransporter platform to develop a potential new therapy for neurodegenerative disorders, with Novartis holding an option to license the candidate.
- Significant financial potential: BioArctic receives $30 million upfront and could earn up to $772 million in milestones, plus mid-single-digit royalties on any future global product sales.
- Expanding BrainTransporter momentum: This marks BioArctic’s third deal using the technology, following partnerships with Bristol Myers Squibb and Eisai in 2024, highlighting its growing role in drug delivery for brain disorders.
Novartis and BioArctic AB have entered into an option, collaboration, and license agreement to explore a potential new treatment for neurodegenerative disorders. The partnership will apply BioArctic’s proprietary BrainTransporter technology to enhance brain-targeted delivery of therapeutic agents, with the goal of generating a novel drug candidate for evaluation in preclinical and early research stages.
How does the Novartis agreement expand BioArctic’s BrainTransporter strategy?
- Under terms of the deal, BioArctic will receive an upfront payment of $30 million during the initial research collaboration, during which it will generate a drug candidate combining BrainTransporter with a Novartis proprietary antibody.
- After reviewing the resulting data, Novartis may exercise an option to license the candidate, a step that would trigger additional potential payments to BioArctic of up to $772 million.
- The Swedish biotech would also be eligible for tiered mid–single-digit royalties on any eventual global product sales.
- If Novartis chooses to exercise the option, it will take over full responsibility for worldwide development and commercialization.1
BioArctic sees Potential in BrainTransporter
"I'm excited by today's announcement. Novartis shares our passion for science and helping patients with severe neurological disorders,” said Gunilla Osswald, CEO, BioArctic, in a press release. “With yet another BrainTransporter agreement it is becoming evident that this versatile platform has huge potential to improve many different projects, internally as well as externally generated, and could support companies across the field in their pursuit of helping people with brain disorders.”
Previous BrainTransporter Collaborations
The Novartis agreement marks BioArctic’s third collaboration leveraging its BrainTransporter technology, underscoring the platform’s growing recognition in drug development for neurodegenerative diseases:
- In December 2024, BioArctic announced that it had entered into a global exclusive license agreement with Bristol Myers Squibb (BMS) for its PyroGlutamate-amyloid-beta antibody program.
- The deal includes BAN2803, which incorporates the BrainTransporter technology.
- Under terms of the deal, BioArctic received an upfront payment of $100 million, with the potential to receive up to $1.25 billion in milestone payments, and tiered low double-digit royalties on global product sales.
- BioArctic will retain an option to co-commercialize the products in the Nordic region.
- BMS will assume sole responsibility for the global development and commercialization of the antibodies.2
- In April 2024, BioArctic signed a research evaluation agreement with Eisai to assess BAN2802 as a potential treatment for Alzheimer disease.
- The treatment combines the BrainTransporter technology with an undisclosed drug candidate.
- Under terms of the deal, the companies will share resource costs.3
Stock Market Reaction
Shares of BioArctic rose more than 13% in early trading following the announcement of its collaboration with Novartis.4 As of August 26, 2025, the stock increased by 32 points from the previous session and just shy of its 52-week high.5
Novartis Perspective
"At Novartis, we are deeply committed to advancing science to help discover treatments for devastating nervous system disorders," said Sophie Parmentier Batteur, head, neurodegeneration research, Novartis, in the press release. "Collaborating with BioArctic allows us to explore the exciting potential of the BrainTransporter technology to promote brain uptake and optimize systemic delivery of novel therapeutic agents by leveraging the biology of the blood-brain barrier. Our focus is to pioneer innovative therapies that improve treatment outcomes by impacting disease progression, to provide meaningful therapies for patients with severe neurological conditions."
References
- BioArctic and Novartis sign an option, collaboration and license agreement using BrainTransporter™ for an upfront payment of USD 30 million plus additional potential milestones and royalties. PR Newswire. August 26, 2025. Accessed August 26, 2025. https://www.prnewswire.com/news-releases/bioarctic-and-novartis-sign-an-option-collaboration-and-license-agreement-using-braintransporter-for-an-upfront-payment-of-usd-30-million-plus-additional-potential-milestones-and-royalties-302538447.html
- BioArctic announces global license agreement with Bristol Myers Squibb for BioArctic’s PyroGlutamate-amyloid-beta antibody program. BioArctic. December 19, 2024. Accessed August 26, 2025. https://www.bioarctic.com/en/bioarctic-announces-global-license-agreement-with-bristol-myers-squibb-for-bioarctics-pyroglutamate-amyloid-beta-antibody-program/
- BioArctic and Eisai sign research evaluation agreement regarding BAN2802. BioArctic. April 20, 2024. Accessed August 26, 2025. https://www.bioarctic.com/en/bioarctic-and-eisai-sign-research-evaluation-agreement-regarding-ban2802/
- BioArctic soars 13% after $30 mln Novartis deal, third tie-up for BrainTransporter. Investing.com. Accessed August 26, 2025. https://www.investing.com/news/stock-market-news/bioarctic-soars-13-after-30-mln-novartis-deal-third-tieup-for-braintransporter-4210259?utm_source=chatgpt.com
- BioArctic AB. GoogleFinance. Accessed August 26, 2025. https://www.google.com/finance/quote/BIOA-B:STO
