Partnering &
Licensing
Overview
A key part of XOMA's strategy is to expand its pipeline and utilize its antibody expertise through collaborations with the pharmaceutical and biotechnology industries and the U.S. government and through licensing of select product candidates and technologies. Current agreements include:
Servier Agreement for Gevokizumab (XOMA 052)
In January 2011, XOMA announced an agreement with Les Laboratoires Servier to jointly develop and commercialize gevokizumab. Key elements of this agreement include:
- XOMA received approximately $35 million upfront, consisting of $15 million and a €15 million loan which does not have to be repaid until 2016. The company is eligible to receive up to approximately $470 million in milestone payments and tiered royalties up to a mid-teens percentage rate.
- XOMA retains development and commercial rights for non-infectious uveitis (NIU) and other inflammatory and oncology indications in the U.S. and Japan. Servier has rights outside of the U.S. and Japan to these indications and worldwide rights to cardiovascular disease and diabetes indications.
- Servier is funding the first $50 million of gevokizumab development expenses and 50% of further expenses for the Phase 3 uveitis indication. Gevokizumab is expected to advance into Phase 3 development in non-infectious uveitis including Behçet’s uveitis in 2012.
- XOMA retains an option to reacquire the development and commercialization rights to gevokizumab cardiovascular and diabetes indications in the U.S. and Japan by paying an option fee and partial reimbursement of incurred development expenses. If XOMA reacquires these rights, it may license them to one or more third parties.
U.S. Government Biodefense Contracts
XOMA has been awarded four contracts since 2005 by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), to advance biodefense-related product development with anti-botulism neutoroxin monoclonal antibodies. Total potential funding under these contracts is approximately $120 million. The botulinum toxin, which causes botulism poisoning, is one of the most toxic poisons and is classified as a Class A, the highest level, bio-terror threat by the U.S. government.
Multiple License and Collaboration Agreements
XOMA has earned revenue from multiple licensing agreements and development collaborations related to its antibody technologiesXOMA's technologies have contributed to the success of marketed antibody products, including LUCENTIS(r) (ranibizumab injection) for wet age-related macular degeneration and CIMZIA(r) (certolizumab pegol) for rheumatoid arthritis and Crohn's disease.
The company has a premier antibody discovery and development platform that incorporates leading capabilities in antibody phage display, library construction, proprietary antibody humanization and affinity enhancement and Bacterial Cell Expression (BCE) technologies. BCE is a key breakthrough biotechnology for the discovery and manufacturing of antibodies and other proteins. As a result, 60 pharmaceutical and biotechnology companies have signed licenses to XOMA’s BCE technology.
