Janssen To Buy Investigational Bermekimab From XBiotech

(RTTNews) - Janssen Biotech Inc., a Janssen Pharmaceutical Company of Johnson & Johnson, said that it agreed to acquire all rights to the investigational compound bermekimab from XBiotech Inc.

Bermekimab is an anti-IL-1alpha monoclonal antibody (mAb) in Phase 2 development for the treatment of atopic dermatitis and hidradenitis suppurativa. It is the antibody targeting IL-1a currently in clinical development and has the potential for superior efficacy and safety compared to the current standard of care.

As per terms of the agreement, Janssen will assume responsibility for the clinical program, working closely with XBiotech as it completes the ongoing Phase 2 studies in atopic dermatitis and hidradenitis suppurativa.

Janssen will pay XBiotech a purchase price of $750 million for the rights to bermekimab. In addition, XBiotech may receive up to $600 million in potential milestone payments.

XBiotech expects to generate additional revenue from the manufacturing supply agreement and clinical services agreement with Janssen over the next two years.

XBiotech said it plans to use a portion of the proceeds from this transaction to fund discovery and development of its next generation True Human anti-IL-1? antibody program. Additionally, a portion of the revenue will be dedicated to advancing other antibody therapeutics in XBiotech's pipeline.

XBiotech also plans to use part of the proceeds in a capital transaction, such as a stock repurchase.