Slaughter and May is advising GlaxoSmithKline - divestment of ofatumumab for auto-immune indications

Slaughter and May is advising GlaxoSmithKline plc (GSK) on the divestment to Novartis of its rights in ofatumumab for auto-immune indications, including multiple sclerosis, for up to US$1 billion. Novartis will pay US$300 million on closing, with further payments of up to US$734 million on the achievement of certain milestones and royalties of up to 12% on future sales. The transaction is expected to complete by the end of 2015.

The divestment follows the acquisition by Novartis of the oncology indications for Ofatumumab as part of the major three-part interconditional transaction with Novartis that closed in March this year.

Slaughter and May is supporting GSK’s in-house legal counsel, Antony Braithwaite, Nicola Fell and Greg France. Cleary Gottlieb Steen & Hamilton LLP is advising on antitrust matters.