Novartis has secured a licensing agreement with China-based Argo Biopharma just after signing a contract with Arrowhead, marking two small interfering RNA (siRNA) deals in a day for the Swiss pharma company.
The transaction with siRNA specialist Argo will see Novartis pay $160m upfront, in addition to milestone and option payments that could reach $5.2bn.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Novartis will gain rights outside of China to two of Argo’s discovery-stage next-generation molecules for the treatment of severe hypertriglyceridemia (sHTG) and mixed dyslipidaemia.
Hypertriglyceridemia is characterised by a high level of triglycerides in the blood while dyslipidaemia is a condition with high levels of both low-density lipoprotein (LDL) cholesterol and triglycerides. Both diseases raise the risk of atherosclerosis and related heart diseases.
Novartis will also have first rights to negotiate on the biotech’s BW-00112 (ANGPTL3), an RNAi therapeutic currently in Phase II trials in the US (NCT06497127) and China.
The deal permits Novartis the rights to a preclinical liver-delivered siRNA candidate outside of China. The drug is due to enter an international Phase I study next year, according to Argo. Both Novartis and Argo will have a reciprocal option to share profits generated by the therapy in China and the US.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataRNAi is a natural mechanism used by cells to regulate the expression of genes. The pathway can be harnessed in the form of siRNAs to silence specific mRNAs and reduce the production of proteins that cause disease.
The deal marks the second time Novartis has ventured to Argo in search of new pipeline candidates. In January 2024, the Swiss drugmaker spent $185m to acquire the rights to two of the biotech’s clinical-phase RNAi candidates in cardiovascular indications. At the time, Novartis gained rights outside of China for one Phase I/IIa asset and global rights to a Phase I candidate.
Novartis Biomedical Research’s global head of cardiovascular and metabolism Shaun Coughlin said: “Long-acting siRNAs, which are designed to deeply and durably target disease-causing proteins, represent an important paradigm shift in the prevention and treatment of cardiovascular diseases. We are excited to build on our work with Argo through these new agreements, which include additional molecules.”
The latest deal, which sees the rights to yet more RNA-based therapeutics transferred between the Argo and Novartis companies, adds to a growing trend of licensing deals between China and Western pharmaceutical companies.
Licensing deals between US and Chinese biopharma companies hit record highs last year, up 280% from 2020, according to analysis by GlobalData. AstraZeneca, for example, outlaid $5.2bn in a research deal with China-based CSPC Pharmaceuticals for chronic disease drug candidates in June 2025.
GlobalData is the parent company of Pharmaceutical Technology.
For Novartis, the Argo deal marked the second billion-dollar RNA-based deal in a day. A few hours prior, the company announced a $2.2bn deal with Arrowhead for siRNA therapy ARO-SNCA. Novartis will initially explore the candidate in Parkinson’s disease, with plans for more synucleinopathies to follow.
