Agreement covers discovery and development of nanobody therapeutics.

Ablynx’ drug discovery and development alliance with Novartis has been extended for another year. The original deal was signed in December 2005, and an extension was made in December 2007.

The agreement covers Nanobody-based therapeutics against disease targets that are difficult to address with conventional antibodies or their fragments. Novartis has exclusive rights to develop and commercialize any resulting products.

Ablynx receives license fees and funding for research and development. The company is also eligible for milestone payments and royalties.