Novartis has signed a licensing agreement worth up to $7.8 billion with Chinese biotechnology company Abogen, expanding the Swiss drugmaker’s push into messenger RNA therapies.
Novartis will pay $575 million upfront for exclusive rights to ABO2203, an experimental autoimmune treatment, and could make additional milestone payments if development and commercial targets are met.
Deal targets autoimmune disease
ABO2203 is designed to use mRNA technology to target B cells involved in autoimmune disease. The approach applies techniques associated with mRNA vaccines to a broader set of therapeutic areas.
The agreement can also give Novartis access to additional Abogen programs, depending on future development decisions. For Abogen, the partnership provides both capital and a global development partner.
Western pharma keeps looking to China
The transaction is part of a wider trend in which major Western pharmaceutical companies are licensing experimental drugs from Chinese biotechnology firms. Those partnerships have grown as Chinese developers produce more late-preclinical and clinical-stage assets.
The maximum headline value depends on milestones and should not be interpreted as a guaranteed payment. The initial $575 million is the committed upfront amount.
Sources: Novartis and Abogen disclosures; Reuters, Oct. 2, 2026.
