Xenova Group plc Potential US$63m (43.2m pounds) Development and License Agreement With Genentech Inc for Novel Drugs in Immune Inflammatory Disease
SLOUGH, England, April 23 /PRNewswire-FirstCall/ -- Xenova Group plc (Nasdaq: XNVA; London: XEN) today announces that it has signed an exclusive development and license agreement with South San Francisco-based Genentech Inc (NYSE: DNA - news) worth up to US$63m plus royalties. The agreement provides Genentech with worldwide rights to develop and market products primarily targeting disorders of the immune system based on Xenova's OX40 receptor protein and anti-OX40 Ligand antibody programs.
Genentech will pay Xenova license fees of up to US$5m (3.4m pounds sterling) over the first year of the collaboration. In addition, Genentech will pay Xenova up to US$58m (39.7m pounds) in milestones assuming successful development and commercialization of a product. Significant tiered royalties, depending on the level of sales, are also receivable by Xenova.
Genentech has also acquired an option, but not an obligation, to develop a second product. Should a second product be developed and commercialized, further milestone payments and royalties would apply.
Xenova will transfer to Genentech responsibility for the further development of the relevant programs, including preclinical and clinical trials, all regulatory filings and the manufacture and sale of any products arising from the agreement worldwide. Genentech will fund all future development activities within the scope of the agreement.
Xenova retains for its proprietary development and commercialization in oncology and other applications all rights to OX40 Ligand and stimulatory anti-OX40 antibodies. Xenova's OX40 platform technology is part of the portfolio of pre-clinical research programs acquired through its merger with Cantab Pharmaceuticals plc in 2001.
OX40 is a platform technology capable of producing several therapeutic solutions. OX40 and OX40 Ligand are a pair of interacting cell-surface proteins which are important for the induction and regulation of immunity. The therapeutic potential of these cell-surface proteins lies in their ability to modulate the immune system. Modulation of the immune system has the potential to be of benefit in a wide range of diseases including inflammatory and autoimmune disease, infectious diseases and cancer. Xenova is the holder of exclusive licenses to several patents relating to the OX40 platform.
David Oxlade, Chief Executive of Xenova, commented:
``We are delighted with this new agreement with Genentech, our third major partnership in the last 8 months. Genentech has a remarkable track record in successfully bringing innovative therapeutic solutions to market in this field. The OX40 mechanism has been shown to be a key component of the body's immune system and is an important new therapeutic target. This agreement highlights the enhanced commercial potential in Xenova's research portfolio since the merger with Cantab and realizes both immediate and long term value for the company. It also clearly illustrates our strategy of seeking partnerships with major players who are capable of exploiting our science in applications which lie outside our main focus on cancer and immunotherapy.''
Notes to Editors
OX40: OX40 Ligand -- The OX40/OX40L receptor-ligand mechanism provides a platform technology which is capable of producing several drug candidates. OX40 and OX40L are a pair of interacting cell-surface proteins which act as co-stimulatory molecules in the initiation of the immune cascade. The therapeutic potential of these products lies in their ability to regulate the T-cell/antigen presenting cell interaction, thereby modulating immunological signals which are central to a wide range of disease processes, including autoimmune disease, cancer and infectious diseases.
Celltech Group plc and OX40 -- Xenova has an existing OX40-related partnership with the UK-based Celltech Group plc, under the terms of which Celltech is developing an anti-OX40 antibody based product for the treatment of autoimmune disease. This application of the technology falls within Xenova's retained rights and is independent of Genentech's license.
Xenova Group plc's product pipeline focuses principally on the therapeutic areas of cancer and immune system disorders. Xenova currently has a broad pipeline of eight programs in clinical development. Xenova's lead program is a P-glycoprotein antagonist for the treatment of multi-drug resistance in cancer, known as tariquidar or XR9576. Tariquidar has completed a successful series of three Phase IIa clinical trials and is expected to enter Phase III clinical development in mid 2002. Tariquidar was partnered for the North American market with QLT Inc in August 2001. The Group has a well-established track record in the identification, development and partnering of innovative products and technologies and has partnerships with other major pharmaceutical companies including Lilly, Pfizer, Celltech and Millennium Pharmaceuticals.
For further information about Xenova and its products please visit the Xenova website at xenova.co.uk. |
