XBiotech Announces Receipt of $75 Million from Sale of Antibody
Company Has Now Received a Total of $750 million for Sale of Its True Human Antibody
AUSTIN, Texas, June 30, 2021 (GLOBE NEWSWIRE) -- XBiotech (NASDAQ: XBIT) announced today it received $75 million from funds escrowed as part of its December 2019 sale of bermekimab. The True Human™ antibody developed by the company to treat inflammatory disorders, including skin diseases, was sold in a uniquely structured Pharma deal that allowed XBiotech to continue to develop new anti-inflammatory antibodies against the same target. With the receipt of $75 million, XBiotech has now received a total of $750 million pursuant to the deal.
XBiotech developed technology to clone monoclonal antibodies from the peripheral blood of humans with natural immunity against diseases. Bermekimab is a naturally occurring antibody capable of neutralizing one of the body’s most potent, and potentially destructive, inflammatory substances. In the sale agreement, XBiotech maintained the right to discover and develop new True Human antibody molecules with similar activity as bermekimab. According to the purchase agreement, XBiotech can develop these new True Human antibodies for all indications in medicine with the exception of dermatological indications. XBiotech could potentially receive up to $600 million more in cash from the deal by agreeing to provide exclusivity for certain additional indications with bermekimab.
As part of the sale agreement for bermekimab, XBiotech agreed to continue under contract to manufacture the antibody and supply finished product. As well, XBiotech engaged in a services agreement to provide its clinical operations to support clinical trial activities with the antibody therapy. These services have been ongoing and have been a significant source of revenue.
Since the sale, XBiotech has focused on research and development of other True Human antibodies that target the same inflammatory pathway as bermekimab. XBiotech has recently commenced a clinical program with just such a new antibody, XB2001, in pancreatic cancer.
About True Human™ Therapeutic Antibodies
XBiotech’s True Human™ antibodies are derived without modification from individuals who possess natural immunity to certain diseases. With discovery and clinical programs across multiple disease areas, XBiotech’s True Human antibodies have the potential to harness the body’s natural immunity to fight disease with increased safety, efficacy and tolerability.
XBiotech is a fully integrated global biosciences company dedicated to pioneering the discovery, development and commercialization of therapeutic antibodies based on its True Human™ proprietary technology. XBiotech is currently advancing a robust pipeline of antibody therapies to redefine the standards of care in oncology, inflammatory and infectious diseases. Headquartered in Austin, Texas, XBiotech has also developed innovative biotech manufacturing technology designed to produce its True Human Antibodies rapidly and cost-effectively. For more information, visit www.xbiotech.com.
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