XOMA Acquires Mezagitamab Rights from BioInvent for up to $30 Million

XOMA Royalty Corporation, a prominent biotech royalty aggregator based in EMERYVILLE, California, U.S., has announced a significant transaction with BioInvent International AB, a Swedish biotech firm recognized for its innovative work in immune-modulatory antibody development for cancer treatment. XOMA Royalty has acquired future royalty and milestone interests related to mezagitamab (TAK-079) from BioInvent for $20 million at closing, with the total transaction potentially reaching up to $30 million.

Brad Sitko, XOMA Royalty's Chief Investment Officer, emphasized the strategic advantage of this acquisition, highlighting how it strengthens XOMA's late-stage royalty portfolio by enhancing their involvement in a promising Phase 3 program. This partnership builds on a longstanding relationship between the two companies, rooted in XOMA's legacy technology which contributed to the development of mezagitamab. Sitko expressed satisfaction in supporting BioInvent with non-dilutive capital, aiding the advancement of BioInvent's proprietary pipeline.

BioInvent’s CEO, Martin Welschof, underscored the transaction's importance, noting how it reflects the achievements from their n-CoDeR® platform, which has consistently generated promising therapeutic antibody candidates. Many of these candidates are currently undergoing mid-to-late-stage clinical trials. The transaction not only expands XOMA’s interest in mezagitamab but also aligns with BioInvent’s strategic focus on value creation through partnerships. This capital infusion strengthens BioInvent's financial position, enabling the company to concentrate on progressing its clinical drug development initiatives.

The economic interests in mezagitamab stem from a historical 2003 cross-licensing arrangement, which encompassed XOMA's bacterial protein expression technology and BioInvent’s antibody library, n-CoDeR®. As per the acquisition terms, XOMA Royalty has initially paid BioInvent $20 million, with an additional $10 million contingent upon a regulatory milestone connected to securing U.S. Food and Drug Administration approval for mezagitamab in treating IgA nephropathy.

Through this agreement, coupled with its existing rights, XOMA Royalty stands to gain milestones worth up to $16.25 million from Takeda, the developer of mezagitamab, along with mid-single digit royalties from future commercial sales of the drug.

Takeda has recently disclosed the commencement of a Phase 3 clinical trial for mezagitamab targeting immune thrombocytopenia. Mezagitamab is a fully human IgG1 monoclonal antibody known for its high affinity to CD38-expressing cells, including plasmablasts and plasma cells. This characteristic facilitates their depletion, presenting mezagitamab as a potential best-in-class anti-CD38 monoclonal antibody.

XOMA Royalty Corporation plays a unique role in the biotechnology sector, acquiring potential future economics tied to pre-commercial and commercial therapeutic candidates licensed to other pharma or biotech companies. This approach provides non-dilutive funding to sellers, enabling them to advance internal drug candidates or fulfill other corporate needs. XOMA Royalty boasts a broad and evolving asset portfolio, defined by rights to future economics from underlying therapeutic candidates.

BioInvent International AB, listed on Nasdaq Stockholm, is a clinical-stage biotech company focusing on discovering new immuno-modulatory antibodies for cancer therapy. With five drug candidates in six Phase 1/2 trials, BioInvent leverages its proprietary F.I.R.S.T™ technology platform to identify promising targets and antibodies, fueling its clinical pipeline and creating opportunities for partnerships and licensing.

BioInvent also generates revenue through research collaborations and licensing agreements with top-tier pharmaceutical companies, alongside third-party antibody production within its integrated manufacturing unit.