Novartis to pay out $12.3 million to Juno Therapeutics over chimeric antigen receptor

7 April 2015

Swiss drug major Novartis (NOVN: VX) has reached a settlement agreement with Juno Therapeutics (Nasdaq: JUNO) over a chimeric antigen receptor technology (CAR-T) for oncology.

Novartis will pay $12.3 million in addition to future milestone payments and mid-single digit royalties on US sales of product candidates related to the disputed patents.

Juno joined the law suit after signing a licensing deal with St Jude Children’s Research Hospital, which was already involved in litigation with the University of Pennsylvania. The case was broadened to include St Jude’s US patent on certain chimeric receptors. Novartis had previously entered into a partnership with the University of Pennsylvania to develop cellular immunotherapies using CAR-T. Novartis will also pay Juno a low double-digit percentage of the royalties it pays to the University of Pennsylvania for the sales of those potential products.

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