Date: 2015-10-01
Type of information: Licensing agreement
Compound: anti-transforming growth factor-beta (TGFb) antibody program including XOMA 089
Company: Novartis (Switzerland) Xoma (USA - CA)
Therapeutic area: Cancer - Oncology
Type agreement: licensing development commercialisation
Action mechanism: monoclonal antibody. The TGFb antibody program is based on Xoma's proprietary antibody discovery technology platform. XOMA 089 is a fully human, high-affinity, late preclinical monoclonal antibody that neutralizes TGFb1 and 2 while sparing TGFb3. Data have shown this compound to be both active against tumor growth in preclinical models of head and neck cancer as well as breast cancer and breast cancer metastasis. Preclinical data also suggest that it may be synergistic with PD1 inhibition and work highlighting these results was recently presented at the 2015 FASEB meeting on the TGFb Superfamily: Signaling in Development and Disease.
Disease:
Details: * On October 1, 2015, Xoma announced it has exclusively licensed the global development and commercialization rights to its anti-transforming growth factor-beta (TGFb) antibody program to Novartis. This agreement includes XOMA 089 and other antibodies that inhibit TGFb1, which may be a more appropriate approach to certain indications. These antibodies have potential in immuno-oncology either as a monotherapy and may be particularly amenable to combination therapies, especially with immune checkpoint inhibitors. This program will be explored as monotherapies and in combination with chimeric antigen receptor T-cell (CART) technology, novel checkpoint inhibitors, STING agonists and Novartis' deep portfolio of targeted therapies.
Financial terms: Under the terms of the agreement, Xoma will receive $37.0 million in the form of an upfront payment and is eligible to receive up to $480 million if all development, regulatory, and commercial milestones are met. The company is also eligible to receive royalties on product sales that range from the mid-single digits to the low double digits. In connection with this license agreement, Novartis has agreed to extend the maturity date on the approximately $13.5 million of outstanding debt under the secured note agreement, which bears interest at the six-month LIBOR plus 2% (currently 2.53%), to September 30, 2020. Xoma has also agreed to reduce the royalty rate to Xoma associated with Novartis' clinical stage anti-CD40 antibodies.
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