Pharma, Biotech Ink Deal on Anti-Inflammatory Candidate

(U.S. Mint)

XOMA Ltd., a biotechnology company in Berkeley, California, and Les Laboratoires Servier a French pharmaceutical company, announced an agreement to develop and commercialize XOMA 052, XOMA’s anti-inflammatory drug candidate. XOMA 052 is designed to inhibit the pro-inflammatory cytokine interleukin-1 beta believed to be a primary trigger of pathologic inflammation in multiple diseases.

Under the agreement, XOMA will receive $35 million upfront, as well as up to $470 million in milestone payments and tiered royalties of about 15 percent. XOMA will retain development and commercialization rights for Behcet’s uveitis and other inflammatory and oncology conditions in the U.S. and Japan. Servier receives similar rights in the rest of the world.

Servier will fund the first $50 million of XOMA 052 development expenses and half of further expenses for the Behcet’s uveitis conditon. XOMA 052 is expected to advance into a Phase 3 trial in Behcet’s uveitis in 2011. The deal also involves funding, licensing, and commercialization rights for diabetes and cardiovascular disease conditions.

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