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BioLineRx, Novartis to develop and commercialize Israeli-sourced drug candidates

Clinical-stage biopharmaceutical company BioLineRx and Novartis Pharma have reached a multi-year strategic collaboration agreement to support the development and commercialization of Israeli-sourced drug candidates.

As part of the partnership, both the firms will jointly evaluate both clinical and pre-clinical stage projects that will be identified and presented by BioLineRx through a Joint Steering Committee. The companies intend to develop up to three programs.

The committee has been set up to determine which projects to advance further in development and on what terms.

Novartis will select those projects that are at or nearing the clinical stage, following which BioLineRx will receive an option fee of $5m.

The company will also fund 50% of the anticipated remaining development costs associated with establishing clinical proof-of-concept, in the form of an additional equity investment in BioLineRx.

Upon establishment of clinical proof-of-concept, Novartis will be eligible to an exclusive right of first negotiation to license from BioLineRx each selected project.

Novartis has made an initial equity investment in BioLineRx of $10m for 12.8% of BioLineRx’s current shares outstanding.

BioLineRx CEO Dr Kinneret Savitsky said: "Recognition by Novartis, the global leader for innovative therapeutics, is a further validation of our drug development capabilities, our business model, and our strong track record of selecting the most promising innovative therapeutic programs stemming from Israel’s leading research institutions and biotech start-ups, and developing them towards commercialization.

"Working closely with Novartis at relatively early stages of project development will enable us to tailor our development processes to meet their needs and expectations, helping to ensure agreed upon clinical goals are met successfully."