Abogen Biosciences, a China-based clinical-stage biotechnology group, announced on Friday that it has entered into a licensing and option agreement with Swiss pharmaceutical company Novartis to advance RNA-encoded therapeutics.

The agreement includes an exclusive worldwide license to Abogen's lead asset, ABO2203, as well as options to exclusively license other potential programs leveraging Abogen's proprietary RNA platform.

Abogen says ABO2203 is a novel mRNA-encoded CD19xCD3 T-cell engager with the potential to transform the treatment landscape for patients with autoimmune diseases. The program is designed to reset B cells by utilising mRNA to direct the endogenous production of T-cell engagers in vivo. The company says that this approach offers a highly differentiated mechanism for B-cell depletion, potentially providing distinct advantages over traditional recombinant T-cell engagers.

Under the agreement, Novartis will also have the exclusive option to license a number of next-generation therapeutic assets developed on Abogen's RNA platform.

Abogen will receive an upfront payment of USD575m and, if all options on all programs are exercised, Abogen is eligible to receive up to approximately USD7.2bn in potential milestone payments, subject to the achievement of agreed development, regulatory and commercial milestones. In addition, Abogen may be eligible to receive potential royalties on future product sales.

The transaction is subject to customary closing conditions, including required regulatory clearances.