XENCOR,INC. (NASDAQ:XNCR) Files An 8-K Entry into a Material Definitive Agreement

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XENCOR,INC. (NASDAQ:XNCR) Files An 8-K Entry into a Material Definitive Agreement

XENCOR,INC. (NASDAQ:XNCR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On February 4, 2019, Xencor,Inc. (“Xencor”) entered into a Collaboration and License Agreement (the “Agreement”) with Genentech,Inc. and Hoffmann-LaRoche Ltd. (collectively, “Genentech”) to which Xencor and Genentech expect to develop and commercialize novel IL-15 cytokine therapeutics that use Xencor’s bispecific Fc technology, including XmAb®24306 (the “Collaboration Products”), in the areas of cancer immunotherapy. The parties will jointly collaborate on the worldwide development of XmAb24306 and other Collaboration Products with Genentech maintaining all worldwide commercialization rights, subject to Xencor having a co-promotion option in the United States. Xencor has the right to perform clinical studies of Collaboration Products in combination with other therapeutic agents, subject to certain requirements. Genentech received a worldwide exclusive license to the Collaboration Products.

Under the terms of the Agreement, Xencor will receive a $120 million upfront payment and is eligible to receive up to an aggregate of $160 million in clinical milestone payments for each Collaboration Product that advances to Phase 3 clinical trials. Xencor is eligible to receive a 45% share of net profits for sales of XmAb24306 and other Collaboration Products, while also sharing in the net losses at the same percentage rate. The companies will also jointly share development and commercialization costs at the same percentage rate, while Genentech will bear launch costs entirely. The profit/cost share is subject to ratchet at Xencor’s discretion and convertible to a royalty under certain circumstances.

Xencor and Genentech will also conduct joint research activities for a two-year period to discover additional IL-15 candidates developed from Xencor’s cytokine and bispecific Fc technologies. Xencor will receive a $20 million development milestone for each new Collaboration Product that is identified from the research efforts and advances into Phase 1 clinical trials.

The term of the Agreement will continue on a program-by-program and country-by-country basis until there are no remaining payment obligations from Genentech to Xencor with respect to Collaboration Products. Genentech may terminate the Agreement in its entirety or on a Collaboration Product-by-Collaboration Product basis by providing prior written notice. Xencor may terminate the Agreement on a Collaboration Product-by-Collaboration Product basis if Genentech fails to spend a defined minimum amount on research, development or commercialization activities for that Collaboration Product. Either party may also terminate the agreement with written notice upon a bankruptcy of the other party or for a material breach by the other party, if such breach has not been cured within a defined period of receiving such notice. In the event of a termination of any individual Collaboration Product or the Agreement in its entirety, the relevant rights revert to Xencor.

The Agreement is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and closing is expected to occur in the first half of 2019.

The foregoing description of the Agreement is only a summary and is qualified in its entirety by reference to the Agreement. Xencor intends to file a copy of the Agreement as an exhibit to its Quarterly Report on Form10-Q for its fiscal quarter ending March31, 2019, portions of which will be subject to a FOIA Confidential Treatment Request to the Securities and Exchange Commission to Rule24b-2 under the Securities Exchange Act of 1934, as amended, for certain portions of the Agreement. The omitted material will be included in the request for confidential treatment.

On February5, 2019, Xencor issued a press release announcing the Agreement. A copy of this press release is furnished as Exhibit99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Xencor Inc Exhibit
EX-99.1 2 a19-3848_1ex99d1.htm EX-99.1 Exhibit 99.1   Xencor to Develop and Commercialize Novel IL-15 Immune Activating Cytokines with Genentech   — Xencor Receives $120 Million Upfront Payment,…
To view the full exhibit click here

About XENCOR,INC. (NASDAQ:XNCR)

Xencor, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on discovering and developing engineered monoclonal antibodies to treat severe and life threatening diseases. Its segment is related to the development of pharmaceutical products. It uses its XmAb technology platform to create antibody product candidates designed to treat autoimmune and allergic diseases, cancer and other conditions. Its clinical stage product candidates include XmAb5871, which is being developed for autoimmune disease, and XmAb7195, which is being developed for asthma and allergic diseases. Its oncology product candidates are in preclinical stage, which include XmAb14045 and XmAb13676. In addition to its compounds in clinical development, the Company uses its XmAb technology to create antibody compounds which are licensed to other pharmaceutical and biotechnology companies for further development, which include XmAb5574/MOR208 and XmAb13551.