Benzinga | Jan 18, 2022 04:25AM EST

Molecular Partners Finalized License Agreement with Novartis for Ensovibep for COVID-19; Molecular Partners to Receive Milestone Payment of CHF150M, 22% Royalty on Ensovibep Sales in Relevant Territories

Molecular Partners AG ((SIX: MOLN, NASDAQ:MOLN), a clinical-stage biotech company developing a new class of custom-built protein drugs known as DARPintherapeutics, today announced that Molecular Partners and Novartis have entered into a license agreement under which Novartis will in-license global rights to ensovibep from Molecular Partners. Ensovibep is a DARPin antiviral therapeutic candidate to treat COVID-19, which recently reported positive topline data from the Phase 2 EMPATHY clinical study.

The finalization of this agreement triggers a milestone payment of CHF 150 million to Molecular Partners. Under the license agreement announced today, Molecular Partners will be eligible to receive a 22% royalty on sales in commercial countries, having agreed to forgo royalties in lower income countries and is aligned with Novartis' plans to ensure affordability based on countries' needs and capabilities.

Financial guidance updateThe Company expects to report approximately CHF 133 million cash and cash equivalents as per December 31, 2021. Upon receipt of the CHF 150 million option exercise milestone from Novartis, Molecular Partners now estimates its cash runway to extend well into 2025, excluding any potential royalty income as well as excluding potential further cash flows to or from R&D partners.