The transaction with the royalty company XOMA Royalty means BioInvent divests future royalty and milestone payments related to mezagitamab – a human immunoglobulin IgG1 monoclonal antibody targeting CD38. The drug candidate is currently being evaluated in a Phase III study for immunological thrombocytopenia (ITP), led by Takeda.
Under the terms of the agreement, BioInvent has received USD 20 million upon closing of the transaction, with an option for an additional USD 10 million upon the achievement of a specific regulatory milestone related to the approval of mezagitamab for IgA nephropathy in the US. BioInvent does not consider mezagitamab to be a core asset and the company remains focused on its own oncology pipeline.
Value creation through partnerships
“This transaction further builds on the potential of XOMA Royalty’s late-stage royalty portfolio through increased financial participation in a promising Phase III program already in our portfolio,” says Brad Sitko, Chief Investment Officer of XOMA Royalty.
“We value the long-standing relationship with BioInvent stemming from XOMA’s legacy technology, which gave rise to mezagitamab. We are pleased to provide BioInvent with non-dilutive capital to further advance its proprietary pipeline to a significant inflection point,” he added.
The transaction highlights BioInvent's ability to strategically leverage the n-CoDeR platform to create value through partnerships. The platform has generated several therapeutic antibody candidates that are now in clinical development, making it a central part of the company's drug development.
The background to the mezagitamab collaboration
The foundation for the deal was laid in 2003, when BioInvent and XOMA Royalty signed a cross-licensing agreement combining XOMA’s bacterial protein expression technology with BioInvent’s n-CoDeR antibody platform library. The collaboration led to the development of the anti-CD38 monoclonal antibody mezagitamab, which has shown potential to be “best-in-class” due to its high affinity for CD38-expressing cells such as plasmablasts, plasma cells and natural killer cells.
BioInvent CEO Martin Welschof emphasized the importance of the transaction and its connection to the value of the n-CoDeR platform:
– In addition to reflecting XOMA Royalty's expanded interest in mezagitamab, the deal supports our strategy to create value through partnerships and provides us with a non-dilutive capital injection that strengthens our balance sheet so we can continue to focus on advancing our own clinical drug development programs.
The transaction gives BioInvent direct financial flexibility to further advance the company's pipeline, primarily BI-1808 and BI-1206, both of which are in Phase II clinical development.
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