Big Pharma turns to China for new drugs as patent cliff drives multibillion-dollar deals

Novartis has signed a deal worth up to $7.8 billion, in the latest of a flurry of tie-ups between Big Pharma and Chinese biotechs.The Swiss pharma major is entering a licensing agreement with China-based Abogen Biosciences for its lead asset, an early-stage experimental treatment for autoimmune disease, Abogen said in a statement on Friday.China offers Western biopharma companies hopes of finding their next blockbuster drug, as patents on top-selling drugs, which generate hundreds of billions in sales, face a "patent cliff" in the early 2030s,Novartis' normally stable shares fell last month by the most since 1987 following several clinical trial setbacks, raising questions about its ability to develop new drugs to offset the looming patent expirations.As part of its Abogen deal, the company will pay $575 million upfront for the global rights to the Chinese company's messenger RNA therapy, with an additional $7.2 billion in milestone payments. It will also have the exclusive option to license Abogen's assets developed on its RNA platform.Far from aloneNovartis' announcement comes after Danish weight loss drug maker Novo announced earlier this week an exclusive licensing agreement wi...