Amgen Signs Development Pact with Xencor
September 16 2015 - 9:08AM
Dow Jones News
By Lisa Beilfuss
Amgen Inc. struck a research and license agreement with Xencor
Inc., a move aimed at expanding its immuno-oncology portfolio as
the biotech company faces increased competition from copycat
drugs.
The agreement with Xencor covers six programs for which Amgen
will be fully responsible for preclinical and clinical development
and commercialization.
The collaboration, which includes molecular engineering by
Xencor and preclinical development of bispecific molecules for five
programs proposed by Amgen, brings together Amgen's capabilities in
target discovery and protein therapeutics with Xencor's XmAb
antibody engineering technology platform, the companies said.
Amgen, which has faced pressure from activist shareholders, like
other big drug companies needs to bring new treatments to market as
older ones face the threat of low-price competition.
An appeals court recently denied California-based Amgen's
request to block Swiss rival Novartis AG from selling a biosimilar
version of Amgen's cancer-care medicine Neupogen. Last year, the
drug brought in $5.76 billion and represented a quarter of Amgen's
top line. Novartis said it would start selling the first biosimilar
drug in the U.S. at a 15% discount to the original.
Xencor, also based in California, specializes in developing
monoclonal antibody therapeutics for the treatment of cancer,
autoimmune disorders and asthma, among other conditions. Its XmAb
platform is used to make subtle changes to the structure of
monoclonal antibodies, and Xencor has eight drug candidates in
clinical development.
Under the terms, Xencor will receive a $45 million upfront
payment and is eligible for up to $1.7 billion in milestone
payments. Xencor may also receive royalties, the companies
said.
Shares in Amgen, down about 4.5% this year, were inactive
premarket. Xencor's stock, about flat year-to-date, surged 30% in
premarket trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 16, 2015 08:53 ET (12:53 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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