Novartis licenses Abogen's mRNA autoimmune program in a deal worth up to $7.8 billion.

Novartis secured exclusive rights to Abogen's experimental ABO2203 treatment and options on other RNA-based programs. Reuters reported that the Chinese biotech will receive $575 million upfront and could earn another $7.2 billion if development and approval milestones are met.

ABO2203 is designed to use mRNA to make patients' cells produce a treatment that removes disease-causing B cells in autoimmune conditions. The deal follows recent Novartis trial setbacks that increased investor scrutiny of its acquisition strategy.