Genmab transfers its ofatumumab collaboration from GSK to Novartis

Danish biotech company Genmab has entered into an agreement with UK pharma major GlaxoSmithKline (LSE: GSK) and Swiss drug major Novartis (NOVN: VX) to transfer the ofatumumab collaboration, currently with GSK, to Novartis.

This follows an announcement in April 2014 that Novartis would acquire GSK’s oncology products, and the transfer of ofatumumab will only become effective on the closing of the GSK/Novartis transaction, expected in the first half of next year.

Upon transfer, Novartis is to develop and commercialize ofatumumab in oncology indications and GSK would continue to develop and commercialize the drug for autoimmune indications. The terms of the deal state that Genmab is not required to pay existing funding liabilities, or to fund research and development costs beyond December 31, 2014.