Novartis struck a deal valued at up to $7.8 billion to license a drug candidate from China's Abogen Biosciences and gain options over future therapies, the latest tie-up between a big Western drugmaker and a Chinese upstart.

The Swiss drugmaker is paying $575 million upfront and could make additional payments of up to $7.2 billion if options on all programs are exercised, Abogen said Friday.

Under the deal, Novartis will acquire worldwide rights over Abogen's lead drug candidate, called ABO2203, and get an exclusive option to license other next-generation therapeutic assets developed on Abogen's RNA platform, the Chinese company said.

Abogen said its lead drug has potential to transform the treatment landscape for patients with autoimmune diseases. The drug uses messenger RNA to boost the body's production of a type of antibodies.