Takeda signs $100M Ab development deal with Xoma, ditches Tavocept and TAK-128

Xoma and Japanese pharmaceutical giant Takeda have signed an agreement for the discovery and development of therapeutic monoclonal antibodies, which is intended to capitalize on the US drugmaker's technologies and expertise in this area. On the day of the news, November 2, shares in Xoma rose 10.6% to $2.30.

As part of the deal, Takeda will make upfront and milestone payments, and will also fund Xoma's R&D activities, including manufacturing the antibodies for preclinical and early clinical supplies, as well as pay royalties on sales of products resulting from the collaboration. Total payments to Xoma could exceed $100.0 million, before royalties, over the entire life of the collaboration, Takeda noted.

Using its collection of phage display libraries and antibody optimization technologies, Xoma will discover antibodies against multiple targets selected by Takeda. The firm's other activities will include preclinical studies to support regulatory filings, cell line and process development, and production of antibodies for initial clinical studies. Takeda will be responsible for clinical trials and commercialization of drugs after Investigatoin New Drug submission to the US Food and Drug Administration, and has the right to manufacture the product once it enters Phase II trials.