Argo Biopharma Announces Multi-Asset License and Option Agreements with Novartis for Novel Molecules for Cardiovascular Diseases

Rhea-AI Summary

Argo Biopharma has expanded its strategic collaboration with Novartis (NYSE: NVS) through multiple cardiovascular asset agreements. The deal includes an upfront payment of $160 million to Argo, with potential milestone and option payments totaling up to $5.2 billion, plus tiered royalties.

The collaboration encompasses: 1) Novartis' option to license ex-China rights for two discovery-stage molecules targeting severe hypertriglyceridemia and mixed dyslipidemia, 2) First negotiation rights for BW-00112 (ANGPTL3) in Phase II, and 3) License with P&L sharing options for a hepatic-delivered siRNA candidate in IND-enabling studies. Additionally, Novartis expressed interest in participating in Argo's next equity financing round.

Positive

• None.

Negative

• Final terms of Novartis' equity participation still subject to due diligence and negotiations
• Most assets are in early stages (discovery/IND-enabling) with significant development risks
• Dependency on Novartis for ex-China development and commercialization

Insights

Biotech Licensing Expert

Novartis secures valuable siRNA cardiovascular assets from Argo Biopharma in a substantial deal worth up to $5.2B, strengthening their CV portfolio.

This collaboration between Novartis and Argo Biopharma represents a significant validation of Argo's siRNA platform technology. The $160 million upfront payment is substantial for a biotech with primarily early-stage assets, highlighting Novartis's confidence in the platform's potential. The deal structure is particularly sophisticated, including both licensing components and reciprocal profit-sharing options across different geographies, allowing both companies to maintain strategic interests in key markets.

The agreement encompasses multiple assets at different development stages - from discovery-stage molecules to the Phase II candidate BW-00112 targeting ANGPTL3. This multi-asset approach reduces risk for both parties while maximizing potential value. ANGPTL3 is a particularly attractive target for dyslipidemia as it regulates both triglyceride and LDL-cholesterol metabolism, potentially offering superior efficacy to existing therapies.

The $5.2 billion in potential milestones indicates Novartis's expectation of significant commercial potential. Cardiovascular diseases represent an enormous market opportunity, causing approximately 20.5 million deaths globally in 2021. The siRNA therapeutic approach offers advantages of enhanced durability and potentially improved patient compliance through less frequent dosing compared to traditional cardiovascular medications.

This marks the third transaction between these companies, suggesting a productive ongoing relationship and Novartis's continued satisfaction with Argo's technology. The potential equity investment further cements this relationship while providing Argo additional capital beyond the upfront payment. This deal significantly strengthens Argo's financial position while accelerating their path to becoming a global biotech with multinational clinical development capabilities.

Cardiovascular Medicine Specialist

The collaboration between Argo and Novartis targets critical unmet needs in cardiovascular medicine. ANGPTL3 inhibition represents a particularly promising approach for patients with severe hypertriglyceridemia and mixed dyslipidemia. This target is mechanistically distinct from statins, as ANGPTL3 inhibits both lipoprotein and endothelial lipases, providing simultaneous reduction of multiple lipid fractions including triglycerides and LDL-C.

siRNA therapeutics offer significant advantages over traditional small molecules or antibodies in the cardiovascular space. The extended duration of action allows for potentially quarterly or semi-annual dosing rather than daily pills, which could dramatically improve the notoriously poor adherence rates in cardiovascular patients - a major factor in treatment failure. Additionally, siRNAs achieve more consistent target suppression compared to the peaks and troughs seen with oral medications.

The development of a combination approach with ANGPTL3 (BW-00112) suggests potential for synergistic efficacy when paired with existing standard-of-care treatments. For patients with refractory dyslipidemia who remain at elevated cardiovascular risk despite maximally tolerated statins, these novel mechanisms represent hope for further risk reduction.

The IND-enabling candidate likely targets a complementary lipid pathway, potentially addressing another aspect of residual cardiovascular risk. The multi-territorial development approach is particularly valuable, as cardiovascular disease presentations and outcomes can vary significantly across different ethnic populations. This comprehensive development strategy should yield therapies with robust efficacy data across diverse patient populations.

• Agreement to explore Argo's Phase 2 ANGPTL3 in a combination trial in dyslipidemia with an option to license second-generation molecules in the pipeline
• License to an additional Argo siRNA candidate currently in IND-enabling studies
• Argo will receive an upfront payment of $160 million, an option for Profit & Loss split across multiple geographies and potential near-term equity; Argo is also eligible to receive option payment, development, sales milestones and royalties on commercial sales

SHANGHAI and BOSTON, Sept. 3, 2025 /PRNewswire/ -- Argo Biopharmaceutical Co., Ltd. (Argo Biopharma, the Company), a clinical-stage biotechnology company focused on developing next-generation siRNA therapeutics, today announced that it has entered into an additional strategic collaboration with Novartis (NYSE: NVS) for multiple cardiovascular assets in Argo's pipeline. The new agreements are in addition to the existing collaboration between the two companies and comprise their third transaction including assets from Argo's pipeline.

"We are thrilled to deepen our collaboration with Novartis, a global leader in Cardiovascular, Renal and Metabolic areas," said Dr. Dongxu Shu, Co-Founder, Chairman of the Board, and CEO of Argo Biopharma. "This new collaboration further supports the innovation engine Argo has built to deliver best-in-class siRNA therapeutics while building a top-tier clinical development team across multiple geographies.  Argo's ambition is to become a global biotech, and corporate development activities are an important component to expand the reach of our hepatic and ex-hepatic siRNA therapeutics."

"Long-acting siRNAs which are designed to deeply and durably target disease-causing proteins represent an important paradigm shift in prevention and treatment of cardiovascular diseases. We are excited to build on our work with Argo through these new agreements, which include additional molecules," said Shaun Coughlin, Global Head of Cardiovascular and Metabolism at Novartis Biomedical Research. "Novartis is committed to advancing innovative treatments for patients with cardiovascular conditions, and our collaboration with Argo further strengthens our efforts to advance potential new therapies that address unmet medical needs."

This most recent collaboration between Argo and Novartis includes:

• An option granted to Novartis to license ex-China rights to two discovery-stage next generation molecules for the treatment of severe hypertriglyceridemia (sHTG) and mixed dyslipidemia and a right of first negotiation to BW-00112 (ANGPTL3), which is currently in Phase II in the U.S. and China, following a combination trial conducted by Argo.
• License with reciprocal options to share in Profit & Loss (P&L) in the U.S. and China for an additional hepatic-delivered siRNA candidate currently in IND-enabling studies and expected to commence a multi-territorial Phase I in 2026. Novartis to receive an ex-China license to the molecule along with a P&L option in China while Argo to receive a P&L option in the U.S.

Under the terms of the agreement, Argo will receive an upfront payment of $160 million and is eligible to receive potential milestone and option payments of a combined potential value of up to $5.2 billion, as well as tiered royalties on commercial sales. In addition, Novartis has expressed its non-binding intention to participate in Argo's next round of equity financing. Such participation (including the amount and timing) remains subject to customary due diligence, negotiation of and entry into definitive documentation.

Cardiovascular disease is one of the leading causes of mortality and morbidity worldwide. In 2021, 20.5 million people died from a cardiovascular condition, around one-third of all global deaths.¹ siRNA therapeutics have the potential for enhanced therapeutic applicability with differentiated efficacy and dosing profile, potentially improving patient outcomes and adherence. Argo deploys a highly efficient discovery and development strategy by leveraging global resources across Asia, the United States, and Europe to create differentiated molecules for patients in need. 

BofA Securities served as financial advisor to Argo Biopharma on this transaction.

About Argo Biopharma
Argo Biopharma is a clinical-stage biotechnology company committed to developing next-generation RNAi therapeutics to provide better treatment options for patients worldwide.  The Company has established a robust and diverse pipeline of RNAi drug candidates targeting a wide range of indications, including cardiometabolic diseases, viral infections, and specialty/rare diseases.  Currently, Argo Biopharma has six therapeutic candidates in clinical development.

This recent collaboration builds on Argo and Novartis' prior partnership announced in January 2024 for $185 million upfront, over $4 billion in milestones, and a blended royalty and commercial structure in select territories. 

For more information, visit www.argobiopharma.com.

INVESTOR & MEDIA INQUIRIES
Argot Partners
argobiopharma@argotpartners.com

References 

1. World Heart Report 2023. Confronting the world's number one killer. World Heart Federation. 

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SOURCE Argo Biopharmaceutical Co., Ltd.

FAQ

What is the value of the Novartis (NYSE: NVS) deal with Argo Biopharma?

The deal includes a $160 million upfront payment with potential milestone and option payments up to $5.2 billion, plus tiered royalties on commercial sales.

What assets are included in the Novartis-Argo Biopharma collaboration?

The collaboration includes two discovery-stage molecules for severe hypertriglyceridemia and mixed dyslipidemia, rights to BW-00112 (ANGPTL3) in Phase II, and a hepatic-delivered siRNA candidate in IND-enabling studies.

How will the Profit & Loss sharing work between Novartis and Argo Biopharma?

The agreement includes reciprocal P&L sharing options where Novartis receives ex-China license with P&L option in China, while Argo receives a P&L option in the US.

What therapeutic areas does the Novartis-Argo collaboration target?

The collaboration focuses on cardiovascular diseases, specifically targeting severe hypertriglyceridemia (sHTG), mixed dyslipidemia, and ANGPTL3-related conditions.

Is Novartis investing equity in Argo Biopharma?

Novartis has expressed non-binding intention to participate in Argo's next equity financing round, subject to due diligence and final documentation.