Date: 2016-07-12
Type of information: R&D agreement
Compound: novel small molecule therapeutics
Company: Bayer Healthcare (Germany) X-Chem (USA - MA)
Therapeutic area: Technology - Services
Type agreement: R&D
Action mechanism: The DEX™ drug discovery engine is based on a library, currently in excess of 120 billion compounds and growing, generated by iterative combinatorial synthesis of small molecules tethered to DNA tags that record the synthetic history of the small molecule. Each small molecule in the library has a unique DNA barcode attached it. The library is screened as a mixture, using affinity-based binding to a target of interest. Certain rare molecules in the library that bind to the target can be "fished out", while the rest of the molecules are washed away. DNA sequencing methods are then used to detect molecules that are enriched when bound to the target. The diverse nature of the library produces multiple families or clusters of related molecules that bind to the target, forming a basis for emergent structure-activity relationships. Structure-activity relationships are typically used by medicinal chemists to guide iterative chemical maturation of a molecule into a drug. Based on the synthetic history encoded in the DNA sequence information, molecules are then made without the DNA tag attached, and tested for activity in conventional assays. The X-Chem platform is exceptional in its ability to thoroughly sample its vast, growing library, based on unique chemistries, proprietary screening methods, highly advanced IT tools, and a rich database based on prior successes.
Disease:
Details: * On July 12, 2016, Bayer and X-Chem, a privately held biotechnology company focused on applying its innovative drug discovery capabilities to the generation of novel small molecule therapeutics, have entered into an expanded global drug discovery collaboration across multiple therapeutic areas and target classes. The new agreement extends Bayer's access to X-Chem's DEX™ technology which is based on DNA-encoded libraries of small molecules with more than 120 billion molecules. The aim of the collaboration is to discover innovative lead structures for complex drug targets in areas of high unmet medical need.
The two partners have been working together successfully under a research collaboration since 2012 and Bayer has already licensed two programs for multiple series of small molecules from X-Chem that address complex target structures such as protein:protein interactions. The new multi-year collaboration agreement will significantly expand the scope and duration of the partnership.
Financial terms: Under the terms of this new agreement, X-Chem will receive an up-front payment, research and development funding, as well as potential pre-clinical, clinical and regulatory milestone payments, up to a total of $528 million. Bayer has an exclusive option to license any programs generated in the course of the collaboration. X-Chem will also receive royalties and sales milestones for each successfully commercialized drug that results from a licensed collaboration program.
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