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Mon. 4 Oct 2021, 10:26am ETBenzinga
In: Biotech, News, Health Care, Contracts, Small Cap, Movers, Trading Ideas, General
  • Johnson & Johnson's (NYSE:JNJJanssen unit has inked a licensing deal worth $100 million in upfront cash and $25 million in equity for global licensing rights with Xencor Inc (NASDAQ:XNCR).
  • The agreement covers Xencor's CD20/CD3 bispecific antibody plamotamab currently in Phase 1 testing against B cell malignancies.
  • The deal will come with up to $1.18 billion in downstream milestones as well as potential royalties in the "mid-teens to low twenties.
  • Janssen will hold exclusive development and commercialization rights worldwide for plamotamab, including monotherapy and combo regimens.
  • Xencor and Janssen will split future clinical trial cost 20-80, respectively. Those plans include a subcutaneous formulation trial for the bispecific, which is expected to begin in 2022. 
  • Meanwhile, Xencor will exclusively fund a Phase 2 combo study of plamotamab, tafasitamab, and lenalidomide in patients with B-cell lymphoma set to start in late 2021 or early 2022.
  • Related: Bristol Myers Licenses Xencor's Technology Platform to Extend Half-Life of COVID-19 Antibodies.
  • Price Action: XNCR stock is up 1.25% at $34.09 during the market session on the last check Monday.