XBiotech Closes on Sale of True Human Antibody Bermekimab to Janssen
December 30 2019 - 4:05PM
XBiotech Inc. (NASDAQ: XBIT) announced today closing of the sale of
the Company’s True Human antibody Bermekimab to Janssen Biotech,
Inc. (Janssen), a Janssen Pharmaceutical Company of Johnson &
Johnson. Upon closing, Janssen paid XBiotech $750 million, with $75
million held in escrow for 18 months. Should Janssen pursue
bermekimab indications outside of dermatology, XBiotech could also
receive up to $600 million in additional payments upon completion
of certain commercialization authorizations. In addition to the
bermekimab acquisition, Janssen and XBiotech entered into
manufacturing supply and clinical services agreements. Revenue from
these agreements are expected to generate positive cash flow for
XBiotech over the next two years.
While Janssen acquired all rights to bermekimab,
XBiotech remains free to use its True Human Antibody discovery
program to develop new antibody therapeutics targeting IL-1⍺ (the
same target as bermekimab) and to commercialize these therapeutics
for all non-dermatological diseases. XBiotech plans to re-enter
clinical development expeditiously with next generation anti-IL-1⍺
therapeutics.
The Company plans to use proceeds from the sale
and the services agreements to fund discovery and development of
its next generation True Human anti-IL-1⍺ antibody program and to
advance other antibody therapeutics in the Company’s pipeline,
including its infectious disease program. The Company will also
have sufficient cash to support a significant capital transaction,
such as a stock repurchase, subject to final board review and
approval.
John Simard, XBiotech’s President & CEO,
commented, “We are pleased to have Janssen acquire bermekimab and
look forward to seeing superior efficacy and safety of this True
Human Antibody in ongoing dermatological clinical trials and
beyond. The transaction is an important validation of our True
Human platform and the cutting-edge science behind targeting IL-1⍺
and enables us to continue to exploit the vast potential for next
generation True Human anti-IL-1⍺ therapeutics outside of
dermatology. With the close of the transaction, we are in a
stronger position to create extraordinary value for
shareholders.”
About XBiotech XBiotech is
a fully integrated, global biopharmaceutical company dedicated to
pioneering the discovery, development and commercialization of
therapeutic antibodies. XBiotech currently is advancing a pipeline
of therapies by harnessing naturally occurring antibodies from
patients with immunity to certain diseases. Utilizing natural human
immunity as a source of new medicines offers the potential to
redefine the standards of care for a wide range of diseases.
The discovery and manufacturing techniques which enable this were
designed by and are exclusive to XBiotech. Headquartered in Austin,
Texas, XBiotech also leads the development of innovative,
proprietary manufacturing technology to reduce the cost and
complexity of biological drug production. For more information,
visit www.xbiotech.com.
About True Human™ Therapeutic
AntibodiesXBiotech’s True Human™ antibodies are the only
available antibodies derived without modification from humans who
possess natural immunity to certain diseases. (Unlike all
commercially available antibodies, which are called “Humanized” or
“Fully Human,” XBiotech’s True Human™ antibodies are directly
sourced from the natural human immune response for specific
diseases without modification, and thereby have not been shown to
cause immunogenicity.) With discovery and clinical programs across
multiple disease areas, XBiotech’s True Human antibodies have the
potential to harness the body’s natural immunity to fight disease
with unprecedented safety, efficacy, and tolerability.
Cautionary Note on Forward-Looking
StatementsThis press release contains forward-looking
statements, including declarations regarding management's beliefs
and expectations, including with respect to XBiotech’s strategic
ambitions, regarding the expected timing of closing of the
transaction with Janssen, filings and approvals relating to the
transaction, the amount and timing of potential future milestone
payments by Janssen, the mechanism of action and potential safety
and efficacy of bermekimab, the anticipated timing of clinical
studies with bermekimab, the progression and results of such
studies, statements regarding the regulatory pathway for bermekimab
and the timing of regulatory filings, and statements regarding any
capital allocation decisions, including as to potential share
repurchases. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "would,"
"could," "expects," "plans," "contemplate," "anticipates,"
"believes," "estimates," "predicts," "projects," "intend" or
"continue" or the negative of such terms or other comparable
terminology, although not all forward-looking statements contain
these identifying words. Forward-looking statements are subject to
inherent risks and uncertainties in predicting future results and
conditions that could cause the actual results to differ materially
from those projected in these forward-looking statements. These
risks and uncertainties are subject to the disclosures set forth in
the "Risk Factors" section of certain of our SEC filings.
Forward-looking statements are not guarantees of future
performance, and our actual results of operations, financial
condition and liquidity, and the development of the industry in
which we operate, may differ materially from the forward-looking
statements contained in this press release. Any forward-looking
statements that we make in this press release speak only as of the
date of this press release. We assume no obligation to update our
forward-looking statements whether as a result of new information,
future events or otherwise, after the date of this press
release.
ContactAshley
Oteroaotero@xbiotech.com512-386-2930
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