Novartis buys rights to BeiGene's checkpoint inhibitor

Switzerland’s Novartis (NOVN: VX) has signed a strategic collaboration agreement to in-license tislelizumab from Sino-American biotech firm BeiGene (Nasdaq: BGNE).

The agreement gives Novartis the right to develop and commercialize the treatment in major markets outside of China, providing a boost to the firm’s interests in the checkpoint inhibitor field.

Novartis will pay $650 million up-front, plus royalties and milestone payments to BeiGene, which is also eligible for up to $1.3 billion in regulatory milestones and up to $250 million based on sales targets, plus royalties. BeiGene will retain the rights to tislelizumab in China and other countries.