Novartis has agreed to pay Abogen Biosciences $575 million upfront for worldwide rights to an experimental mRNA-encoded T-cell engager, in a deal that could reach approximately $7.8 billion if additional options are exercised and development, regulatory and commercial milestones are achieved.

The agreement gives Novartis exclusive global rights to ABO2203, Abogen’s investigational CD19xCD3 T-cell engager, while also providing the Swiss pharmaceutical company with exclusive options to license additional therapies developed using Abogen’s RNA technology platform. Abogen could receive up to approximately $7.2 billion in milestone payments, in addition to potential royalties on future product sales.

ABO2203 is being developed as an mRNA-based approach to targeted B-cell depletion, an area of growing interest in autoimmune drug development. Rather than administering a manufactured T-cell engager protein directly, ABO2203 uses mRNA to instruct cells in the body to produce the CD19xCD3 molecule. The engager is designed to bring CD3-positive T cells into contact with CD19-positive B cells, with the goal of eliminating the B-cell population implicated in a range of autoimmune disorders.

Abogen describes ABO2203 as the first mRNA-encoded T-cell engager to enter clinical evaluation in autoimmune disease. The company has also been studying the candidate in B-cell non-Hodgkin lymphoma. The approach is part of a broader effort to develop therapies capable of producing an immune reset by eliminating disease-driving B cells. Conventional biologic T-cell engagers deliver the therapeutic protein directly, whereas Abogen’s strategy seeks to generate the engager inside the patient through transient RNA expression.

Abogen began a Phase 1 study of ABO2203 in autoimmune disease in 2024, according to industry reporting. The company has subsequently reported early clinical work in immune thrombocytopenia and B-cell non-Hodgkin lymphoma. The company has said that early data showed B-cell depletion in patients with immune thrombocytopenia without observed cytokine release syndrome in the small group reported. These findings remain early-stage and will need to be confirmed in larger and more controlled studies.

The candidate’s clinical development is particularly relevant to autoimmune diseases in which sustained depletion of pathogenic B cells could potentially alter disease activity rather than simply suppress individual inflammatory pathways.

The agreement extends Novartis’ interest in RNA-based medicines beyond a single asset. In addition to ABO2203, Novartis will hold exclusive options covering a number of potential next-generation programs originating from Abogen’s proprietary RNA platform. The structure gives Novartis the opportunity to evaluate additional programs before committing to individual licenses.

For Abogen, the transaction provides substantial non-dilutive capital while bringing a global pharmaceutical partner into the development of its lead RNA therapeutic. “This agreement marks an important milestone for Abogen,” CEO Bo Ying says, adding that the partnership could help advance ABO2203 and expand the company’s RNA platform into additional therapeutic targets.

Novartis’ Fiona Marshall, president of Biomedical Research, said the company is interested in the potential of mRNA-encoded T-cell engagers to complement existing therapeutic approaches by enabling in vivo production of the molecules.

The Abogen agreement comes as multinational pharmaceutical companies increasingly turn to Chinese biotechnology companies for access to novel drug candidates and technology platforms. Reuters reported that the Novartis-Abogen transaction is part of a broader wave of licensing activity involving Chinese biotechs and global drug makers, as large pharmaceutical companies seek external sources of innovative therapies.

For more information, visit www.novartis.com.