XOMA Acquires Royalty Interest Position from Agenus on Seven Assets Being Developed by Merck and Incyte
21 September 2018 - 9:00PM
XOMA Corporation (NASDAQ: XOMA), announced today that for $15.0
million, it has acquired from Agenus (NASDAQ: AGEN) a partial
interest position in the rights to potential milestone and royalty
payments associated with seven immuno-oncology antibodies currently
being developed by Merck and Incyte under their collaborations with
Agenus.
“This is an important deal reflecting our new royalty-aggregator
strategy to acquire milestone and royalty payments associated with
therapeutic candidates partnered by others. The basket of
Agenus immuno-oncology assets is advancing in the hands of two of
the leading companies in oncology drug development,” said Jim Neal,
Chief Executive Officer at XOMA. “These assets possess all
the characteristics we have established for our business model:
outstanding development partners, mid-stage to early stage assets,
important therapeutic categories, and sizable royalty commitments.
We believe this investment could generate potential future
cash flows over an extended period from milestones and royalties on
some exciting potential commercial opportunities.”
The seven royalty interest antibodies are:
- One Phase 1 antibody being developed by Merck on an undisclosed
novel target;
- Incyte’s INCAGN1876, a GITR agonist in Phase 1/2 studies;
- Incyte’s INCAGN1949, an OX-40 agonist in Phase 1/2
studies;
- Incyte’s INCAGN2385, a LAG-3 antagonist in Phase 1
studies;
- Incyte’s INCAGN02390, a TIM-3 antagonist expected to enter the
clinic in 2018; and,
- Two preclinical antibodies being developed by Incyte on
undisclosed targets.
Under the terms of the agreement, XOMA will receive low- to
mid-single-digit royalties on future sales of these seven
immuno-oncology assets. Additionally, XOMA is entitled to a
portion of milestone payments associated with the assets.
XOMA has drawn $7.5 million from its line of credit with Silicon
Valley Bank (“SVB”) to partially fund this transaction.
About XOMA CorporationXOMA has built a
significant portfolio of products that are licensed to and being
developed by other biotechnology and pharmaceutical companies.
The Company’s portfolio of partner-funded programs spans
multiple stages of the drug development process and across various
therapeutic areas. Many of these licenses are the result of
XOMA’s pioneering efforts in the discovery and development of
antibody therapeutics. The Company’s royalty-aggregator
business model includes acquiring additional licenses to
partner-funded programs. For more information, visit
www.xoma.com.
Forward-Looking StatementsCertain statements
contained in this press release are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements regarding the potential of XOMA’s portfolio of partnered
programs and licensed technologies to generate royalty proceeds
over time and create potential cash flow, including from potential
milestone and royalty payments associated with immuno-oncology
programs of Agenus. These statements are based on assumptions
that may not prove accurate, and actual results could differ
materially from those anticipated due to certain risks inherent in
the biotechnology industry, including those related to the fact
that we may not receive any significant royalty or milestone
payments from Agenus’ assets, our product candidates subject to
out-license agreements are still being developed, and our licensees
may require substantial funds to continue development which may not
be available; we do not know whether there will be, or will
continue to be, a viable market for the products in which we have
an ownership or royalty interest; we may not be successful in
entering into out-license agreements for our product candidates; if
our therapeutic product candidates do not receive regulatory
approval, our third-party licensees will not be able to manufacture
and market them. Other potential risks to XOMA meeting these
expectations are described in more detail in XOMA's most recent
annual report on Form 10-K, in subsequent quarterly reports on Form
10-Q and in other SEC filings. Consider such risks carefully
when considering XOMA's prospects. Any forward-looking
statement in this press release represents XOMA's views only as of
the date of this press release and should not be relied upon as
representing its views as of any subsequent date. XOMA disclaims
any obligation to update any forward-looking statement, except as
required by applicable law.
Investor contact:Juliane
SnowdenOratorium Group, LLC+1
646-438-9754jsnowden@oratoriumgroup.com
Media contact:Kathy VincentKV
Consulting & Management+1
310-403-8951kathy@kathyvincent.com
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