BeiGene to receive up to $1 billion in oncology deal with Novartis

BeiGene Ltd. $(BGNE)$ said Monday it had entered an agreement with Swiss drug company Novartis Pharma AG (NOVN.EB) to develop its investigational TIGIT inhibitor ociperlimab in North America, Europe, and Japan and to market five Novartis oncology treatments in China. "Ociperlimab is an investigational potent TIGIT inhibitor with intact Fc function, believed to be critical for the anti-tumor activities of TIGIT antibodies," the companies said in a joint statement. Beijing-based BeiGene will receive an upfront payment of $300 million up to $700 million more on exercise by Novartis of a time-based option prior to mid-2023. After that it will be eligible for up to $745 million for reaching certain regulatory milestones, and $1.15 billion for sales milestones and royalties.

U.S.-listed shares of BeiGene were up 2.3% premarket.