MorphoSys signs transformational deal

MorphoSys (FSE:MOR) and Novartis (NVS; SWX:NOVN) signed an antibody deal that should fund the biotech's next stages of internal therapeutic development. The agreement, an expansion of a 2004 deal, will give MOR $600 million over 10 years in committed R&D funding, technology access fees and internalization fees. MOR could receive total payments of more than $1 billion, including milestones, plus royalties.

The companies will continue to use MOR's HuCAL GOLD library to jointly discover and optimize an increased number of antibodies against targets provided by NVS, which is responsible for preclinical and clinical testing and commercialization. The expanded deal includes access to future HuCAL technology upgrades and also gives MOR an option to co-develop and co-market certain resulting products. NVS also exercised its previous option to internalize HuCAL at its research sites. ...