The success of the company can also be attributed to its clever IP strategy. Unlike traditional drug development models, where the IP is associated with a single molecule, BioArctic’s approach decouples the delivery mechanism from the payload.
This approach means the platform can be applied across different diseases and partners, creating a recurring revenue stream through licensing fees, milestones, and royalties. Not only is the platform a tool, but it is also a licensable asset adaptable to multiple therapeutic targets.
Recently, BioArctic formed a partnership with Novartis, and the agreement included a $30 million payment upfront alongside potential milestone payments of up to $772 million. Novartis will gain access to BioArctic’s TfR-based delivery system to enhance its proprietary antibody for an undisclosed neurodegenerative condition.
Bristol Myers Squibb (BMS) has also shown interest by paying $100 million upfront for the PyroGlu-Aβ antibody program, which includes BrainTransporter-enabled BAN2803. This reiterates the platform's versatility and value.
From an investor standpoint, these deals indicate that BioArctic's IP is highly defensible and valuable in a market where neurodegeneration therapies could generate over $100 billion in annual revenue by 2030.
Although BioArctic's current focus is on neurodegeneration, the BrainTransporter platform's potential extends to other therapeutic areas. The TfR pathway is a natural gateway for transporting essential molecules into the brain, making it an ideal route for delivering gene therapies or small-molecule drugs. This platform highlights the need for a solid IP strategy and a potential breakthrough for overcoming the notorious blood-brain barrier.
