Exhibit 99.1
XOMA Acquires Royalty Interest Position from Agenus on Seven Assets Being Developed by Merck and Incyte
EMERYVILLE, Calif., September 21, 2018 (GLOBE NEWSWIRE) – XOMA Corporation (NASDAQ: XOMA), announced today that for $15.0 million, it has acquired from Agenus (NASDAQ: AGEN) a partial interest position in the rights to potential milestone and royalty payments associated with seven immuno-oncology antibodies currently being developed by Merck and Incyte under their collaborations with Agenus.
“This is an important deal reflecting our new royalty-aggregator strategy to acquire milestone and royalty payments associated with therapeutic candidates partnered by others. The basket of Agenus immuno-oncology assets is advancing in the hands of two of the leading companies in oncology drug development,” said Jim Neal, Chief Executive Officer at XOMA. “These assets possess all the characteristics we have established for our business model: outstanding development partners,mid-stage to early stage assets, important therapeutic categories, and sizable royalty commitments. We believe this investment could generate potential future cash flows over an extended period from milestones and royalties on some exciting potential commercial opportunities.”
The seven royalty interest antibodies are:
| | • | | One Phase 1 antibody being developed by Merck on an undisclosed novel target; |
| | • | | Incyte’s INCAGN1876, a GITR agonist in Phase 1/2 studies; |
| | • | | Incyte’s INCAGN1949, anOX-40 agonist in Phase 1/2 studies; |
| | • | | Incyte’s INCAGN2385, aLAG-3 antagonist in Phase 1 studies; |
| | • | | Incyte’s INCAGN02390, aTIM-3 antagonist expected to enter the clinic in 2018; and, |
| | • | | Two preclinical antibodies being developed by Incyte on undisclosed targets. |
Under the terms of the agreement, XOMA will receivelow- tomid-single-digit royalties on future sales of these seven immuno-oncology assets. Additionally, XOMA is entitled to a portion of milestone payments associated with the assets. XOMA has drawn $7.5 million from its line of credit with Silicon Valley Bank (“SVB”) to partially fund this transaction.
About XOMA Corporation
XOMA has built a significant portfolio of products that are licensed to and being developed by other biotechnology and pharmaceutical companies. The Company’s portfolio of partner-funded programs spans multiple stages of the drug development process and across various therapeutic areas. Many of these licenses are the result of XOMA’s pioneering efforts in the discovery and development of antibody therapeutics. The Company’s royalty-aggregator business model includes acquiring additional licenses to partner-funded programs. For more information, visit www.xoma.com.
