XBiotech Sells Bermekimad to Janssen Biotech
December 09 2019 - 6:55AM
Dow Jones News
By Chris Wack
XBiotech Inc. (XBIT) shares rose 37% to $15.20 after the company
said it is selling its novel antibody bermekimab that neutralizes
interleukin-1 alpha, or IL-1, to Janssen Biotech Inc., a Janssen
Pharmaceutical company of Johnson & Johnson (JNJ)
The biopharmaceutical company said Janssen will acquire all
rights to bermekimab under the terms of the agreement, and XBiotech
will be free to use its True Human Antibody discovery program to
develop new antibody therapeutics that target IL-1, which promotes
disease-causing inflammation in a wide range of medical conditions,
to treat non-dermatological diseases.
XBiotech said it plans to re-enter clinical development
expeditiously with a next generation anti-IL-1 therapeutic.
XBiotech said it will use its proprietary manufacturing
technology to produce clinical supplies of bermekimab for Janssen
under a supply agreement. The company will also will contract with
Janssen to provide clinical trial operation services to complete
two ongoing Phase II clinical studies evaluating bermekimab in
hidradenitis suppurativa and atopic dermatitis.
On closing, Janssen will make a cash payment of $750 million to
XBiotech, which may also receive up to $600 million in potential
milestone payments. XBiotech said it expects to generate additional
revenue from the manufacturing supply agreement and clinical
services agreement with Janssen over the next two years.
XBiotech plans to use a portion of the proceeds from this
transaction to fund discovery and development of its next
generation True Human anti-IL-1 antibody program. A portion of the
revenue will be dedicated to advancing other antibody therapeutics
in XBiotech's pipeline, and for a capital transaction, such as a
stock repurchase.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
December 09, 2019 06:40 ET (11:40 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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