Xoma, Novartis partner for IL-1 beta mAbs and related IP
Xoma Corp. (NASDAQ:XOMA) granted Novartis AG (NYSE:NVS; SIX:NOVN) exclusive, worldwide rights to commercialize IL-1 beta mAb candidate gevokizumab (XOMA 052). The company also granted Novartis a non-exclusive license to IP covering IL-1 beta-targeting antibodies to treat cardiovascular disease and other diseases.
Xoma will receive $16 million up front in the gevokizumab deal. The company is eligible for $438 million in milestones and tiered high single-digit to mid-double digit royalties. Novartis will also settle a €12 million ($14.1 million) debt owed by Xoma to Servier (Neuilly-sur-Seine, France) under a terminated 2010 deal granting Servier global rights to gevokizumab. Furthermore, Novartis will extend the maturity date to September 2022 from September 2020 on debt owed to the pharma by Xoma. The debt stems from a $50 million loan facility Xoma received to fund its share of expenses under a deal with Novartis that was restructured in 2008. Novartis previously extended the debt’s maturity date after Xoma granted the pharma exclusive worldwide rights to an antibody program targeting transforming growth factor (TGF) beta, including preclinical cancer candidate XOMA 089. The loan’s outstanding principal balance was $14.3 million as of June 30 (see BioCentury, Oct. 5, 2015)...