Xencor, Novartis In Collaboration, License Deal For Bispecific Antibodies

(RTTNews) - Xencor Inc. (XNCR), a clinical-stage biopharmaceutical company, Tuesday announced that it has entered into a collaboration and license agreement with Novartis AG (NVS) to develop and commercialize novel therapeutics. Xencor will receive a $150 million upfront payment plus milestone payments and royalties.

The company noted that the therapeutics in deal include XmAb 14045, which is expected to begin clinical development for acute myeloid leukemia in 2016 and XmAb 13676, also expected to begin clinical development for B-cell malignancies in 2016.

Under the deal terms, the parties will collaborate and share development costs for the worldwide development of XmAb14045 and XmAb13676, with Xencor maintaining U.S. commercialization rights and Novartis having commercialization rights in the rest of the world.

Novartis will receive worldwide rights to Xencor's bispecific technology to develop and commercialize four additional targets selected by Novartis, one of which Xencor may elect to co-detail in the U.S.

The bispecific collaboration will include molecular engineering by Xencor. Additionally, Novartis will receive a worldwide non-exclusive license to use Xencor's XmAb Fc technologies in up to ten molecules.

Xencor will receive a $150 million upfront payment and is eligible to receive clinical, regulatory and sales milestone payments for successful programs.

Xencor is also eligible to receive tiered, low double-digit royalties for sales of XmAb14045 and XmAb13676 outside of the U.S., mid single-digit tiered royalties for worldwide sales of the four proprietary Novartis bi-specific molecules, unless Xencor exercises its right to co-detail one of these molecules and share in the costs and U.S. profit, and low single-digit royalties on Novartis molecules incorporating Xencor's XmAb Fc technology.

Xencor said it will discuss this collaboration and licensing agreement among additional items today at the Company's Analyst Day.