Novartis pays €945m for eczema programme

German Morphosys and Belgian Galapagos collaborated on the development of MOR 106, an investigational, fully human, IgG1 monoclonal antibody directed against the target IL-17C. Now, they have entered into a worldwide, exclusive agreement with Novartis Pharma AG covering the development and commercialisation of MOR106. This includes the ongoing Phase II trial in atopic dermatitis as well as a planned Phase I study to evaluate the safety and efficacy of a subcutaneous formulation of MOR106. MorphoSys and Galapagos will conduct additional trials to support development of MOR106 in atopical dermatitis, while Novartis will explore the potential of MOR106 in other promising indications. Data from preclinical models suggest that the target of MOR106 might be involved in other diseases, as well.

MorphoSys and Galapagos will split the upfront payment of €95m as well as all milestone payments potentially amounting to €850m and royalties. Novartis will also carry the cost of all future research, development, manufacturing and commercialisation for MOR106. 

“This collaboration with Novartis will enable us to accelerate and broaden the development of MOR106 beyond our current focus on atopic dermatitis and to exploit the potential of MOR106 to the maximum,” commented Simon Moroney, Chief Executive Officer of MorphoSys AG. “It is very gratifying to announce this collaboration with Novartis, an immunology and dermatology powerhouse, to broadly expand the development and pave the path to potential commercialization of MOR106,” added Onno van de Stolpe, CEO of Galapagos.

Atopical dermatitis, a form of eczema, is a dermatologic disease that can cause intense itching and recurring lesions. It affects approximately 8% of adults and 14% of children worldwide.