Solna-based Xbrane Biopharma has built its business on a patented platform technology that lowers production costs for biosimilars compared to traditional systems. The company's portfolio addresses a market worth over €26 billion in annual peak sales for the reference products, with candidates that Ximluci (biosimilar to Lucentis) and Xdivane (biosimilar to Wonderful) as core assets.
XB003, a biosimilar candidate for Cimzia for the treatment of rheumatoid arthritis and other inflammatory diseases, represents approximately 25 percent of the competitively adjusted market potential in Xbrane's portfolio. The decision to sell the asset and a significant portion of the R&D operations is made to reduce the size of the company's own organization and dedicate remaining resources to the most promising programs.
The deal comes after a challenging period for Xbrane, where the company has struggled to balance development costs and revenue generation. By divesting XB003 and reducing its workforce from around 60 to 20 employees, Xbrane expects to reduce its annual fixed costs by around SEK 120 million. This will give the company a better opportunity to drive Ximluci and Xdivane towards commercial success, with the ambition to generate significant royalty and profit sharing revenues going forward.
Transaction details
The transaction with Alvotech, a global biosimilars player based in Iceland, includes several key components. Xbrane is transferring XB003 and its R&D operations at Campus Solna at Karolinska Institutet, including lease agreements, laboratory equipment and around 40 employees. The purchase price of SEK 275 million consists of three parts: a cash payment of just over SEK 102 million, the assumption of a convertible loan from CVI Investments worth just under SEK 153 million, as well as the takeover of XB003-related accounts payable of approximately SEK 20 million.
To complete the transaction, approval from Xbrane's shareholders is required at an extraordinary general meeting on April 14, 2025. Support for the transaction has been secured from key shareholders such as Ashkan Pouya, a large international institution, as well as board and management members.
Effects and future plans for Xbrane
The remaining organization will then focus on driving Ximluci and Xdivane forward. For the next 12 months, the team will continue to operate from Solna through a service agreement with Alvotech, which provides access to support from the transferred R&D unit. With significantly lower fixed costs, Xbrane will have financial breathing space to reach important milestones in the remaining portfolio.
For Ximluci, which is approved and sold in Europe and the Middle East and North Africa, the focus is on increasing sales. In 2024, the product generated SEK 63 million in revenue and SEK 45 million in gross profit, with volume growth of 20-30 percent per quarter that is expected to continue. Xbrane has an inventory of drug substance worth SEK 180 million, which is planned to be converted into cash by 2027 through deliveries to the partner WHAT TO.
In parallel, the company is working towards FDA approval in the US, where an application was submitted in December 2024. At a launch in 2026, in collaboration with Valorum, a market share of 1–2 percent in the $10 billion market for retinal anti-VEGF drugs could generate royalty revenues of SEK 150–250 million annually.
Preparations are underway for a clinical study for Xdivane, which the partner Intake is expected to start in the second quarter of 2025. Xbrane will deliver documentation and materials in April for a milestone payment, with a view to an FDA application no later than the fourth quarter of 2027. The reference product Opdivo has annual sales of $14 billion, and with a competitive position, Xbrane estimates that the profit share could potentially exceed SEK 1 billion per year upon market entry.
Continuing to evaluate financial solutions
The deal is a first step to secure Xbrane's financial stability and realize the value in its core programs. The company plans to continue evaluating opportunities such as new partnerships and capital market transactions to further strengthen its cash position.
– This transaction significantly strengthens Xbrane's financial position while the company maintains over 75 percent of the potential market of the competitively adjusted product portfolio, comments Martin Amark, CEO of Xbrane Biopharma. Following the transaction, Xbrane will be better equipped to fully focus on realizing the full potential of Ximlucis and Xdivane with the ambition to generate valuable royalty/profit sharing from these programs in the coming years.