$5.4 Billion: Novartis bets on a Chinese siRNA drug

Sep 04, 2025 09:08 CST Updated Sep 05, 00:27

On September 3, Argo Biopharma announced a new strategic collaboration agreement with Novartis to jointly develop multiple cardiovascular products. This new agreement further expands upon the existing partnership previously established between the two parties.

The new cooperation agreement includes:

Argo Biopharma grants Novartis option for rights outside China to two early-stage molecules for the treatment of severe hypertriglyceridemia (sHTG) and mixed dyslipidemia, as well as preferential negotiation rights for BW-00112 (ANGPTL3). The product is currently in phase II clinical trials in the United States and China, with subsequent combination therapy clinical trials to be led by Argo Biopharma.

For another siRNA candidate drug in the preclinical research stage, Argo Biopharma granted Novartis an exclusive license outside of China, with reciprocal options to share profits and losses (P&L) in the United States and China. The product is expected to enter Phase I clinical trials in 2026.

Argo Biopharma will receive $160 million upfront payment, and may receive potential milestone and option payments as well as tiered royalties on commercial sales, with a total potential milestone value of up to 5.2 billion US dollars. In addition, Novartis has expressed preliminary interest in participating in Argo Biopharma's next round of equity financing. The specific details of its participation, including the investment amount and timing, still require routine due diligence and will be determined through negotiations and the signing of a formal agreement by both parties.

Argo Biopharma and Novartis first forged a connection in January 2024, with their prior collaboration, totaling $4.165 billion, setting the stage for this transaction. Total amount of two BD deals approaches $9.4 billion. At that time, Argo Biopharma granted Novartis the overseas rights to two cardiovascular siRNA drugs, including the global rights to a phase I clinical product and the rights outside Greater China to a phase I/IIa product. The agreement specifically stipulated that Novartis retains "the option to select up to two additional target compounds for cardiovascular diseases".

The siRNA candidate molecules covered by the new agreement fall within the scope of this option. It is reported that BW-00163 (hypertension siRNA), the core pipeline from the initial collaboration, entered Phase II clinical trials in June 2025, successfully triggering a milestone payment and laying the foundation for this deepened cooperation.

Novartis continues to bet siRNA due to its strategic demand to "replenish and upgrade ammunition" in the cardiovascular pipeline. As a core therapeutic area for Novartis, the patent of its traditional blockbuster drug Entresto (sacubitril/valsartan) is about to expire, creating an urgent need to bolster its innovative pipeline. Since its approval and market launch in 2015, Entresto has rapidly become a "blockbuster" product for Novartis in the cardiovascular field due to its breakthrough efficacy in heart failure treatment, serving as one of the main drivers of Novartis' revenue growth in recent years.

In 2023, Entresto's global sales reached $6.035 billion, accounting for a significant portion of Novartis' total revenue.

Novartis' bet on siRNA has long been traceable. In 2019, Novartis acquired MDCO and obtained an siRNA drug called inclisiran. In August 2023, the first prescription in China was issued, with the generic name, Inclisiran Sodium Injection, priced at nearly 10,000 yuan in China. On July 17, 2023, Novartis announced the acquisition of DTx Pharma for a total deal amount of $1 billion, including a $500 million upfront payment and up to $500 million in milestone payments. Through this acquisition, Novartis gained DTx Pharma's core asset — a preclinical-stage siRNA candidate drug named DTx-1252.

About Argo Biopharma

Argo, founded in April 2021 and headquartered in Shanghai, is a private biotechnology company. The company’s primary focus is on the research and development of RNAi therapeutics. Argo has developed an industry-leading RNAi platform technology named RADS (RNAi with advanced activity, duration, and safety), which showcases the company's technical expertise in delivery, chemical modification, and sequence design, consistently generating top-tier RNAi therapies.

Argo's current pipeline includes more than 20 therapeutic programs for the treatment of cardiovascular and metabolic diseases, hematology, complement pathway disorders, viral infections, and neurodegenerative diseases. Five leading programs are in clinical development, all demonstrating good tolerability, safety profiles, and best-in-class potential.

Source: Frontiers of Cell and Gene Therapy