HQ Team
October 4, 2026: China’s Abogen Biosciences has signed a $7.8 billion licensing and option pact with Novartis AG to make messenger RNA-encoded therapies, which have the potential to treat autoimmune diseases in a more advanced form than the existing ones.
Messenger RNA (mRNA)-encoded therapies use special temporary instructions to teach certain body cells how to make a protein that can help fight a disease or improve health. Scientists create mRNA with instructions to make a particular protein rather than directly supplying the finished protein or drug.
After injection, the body’s cells read the instructions and produce the protein, which helps fight diseases, trigger an immune response or perform a specific function. The mRNA instructions are temporary. Once the instructions have been used, the mRNA is naturally broken down by the body. They do not change a person’s DNA.
Novartis will gain exclusive rights to Abogen’s experimental drug, ABO2203, and options to license other therapies based on Abogen’s RNA technology. It will pay Abogen $575 million upfront, according to a statement from Abogen.
$7.2 billion on approval
Abogen will receive an additional $7.2 billion if the drug advances through development and wins regulatory approval.
ABO2203 gives the body’s immune system instructions to build a weapon that helps T cells find and destroy harmful B cells. Instead of injecting the weapon itself, scientists use mRNA to get the body to make it. This could help treat certain blood cancers and autoimmune diseases, potentially with fewer serious side effects.
T cells identify and destroy abnormal or unwanted cells, and B cells normally help the body fight infections that can sometimes become cancerous or contribute to autoimmune diseases. The ABO2203 helps produce a protein that connects T cells to B cells, bringing them close enough for T cells to attack and destroy the B cells.
Investors have scrutinised Novartis’s dealmaking strategy after failures with drugs acquired through previous purchases. Two end-stage trial drug setbacks in September sparked calls from its board on future acquisitions. Novartis stated that Abogen’s ribonucleic acid technology complements its existing approach to autoimmune disease.
‘Innovative approach’
“Achieving effective and durable immune reset remains an important goal across several autoimmune diseases,” said Fiona Marshall, President of Biomedical Research at Novartis. “mRNA-encoded T-cell engagers represent an innovative approach that could complement existing therapeutic modalities by enabling in vivo production of these molecules. We look forward to further developing the potential of ABO2203 and additional possible applications of Abogen’s RNA platform.”
Bo Ying, Chief Executive Officer of Abogen, said: “This agreement marks an important milestone for Abogen, underscoring the broad potential of our RNA platform to expand beyond prophylactic vaccines.
“ABO2203 is the first mRNA-encoded T-cell engager to enter clinical evaluation for autoimmune diseases, reflecting our commitment to delivering differentiated, accessible and scalable therapies for patients with B-cell-mediated disorders.”
The company stated that its ABO2203 was designed to “reset B cells by utilising mRNA to direct the endogenous production of T-cell engagers in vivo” and the approach offered a “highly differentiated mechanism for B-cell depletion, potentially providing distinct advantages over traditional recombinant T-cell engagers.”
