Xenetic, Baxalta Update ContractBy
Xenetic Biosciences, Inc., a biopharmaceutical company developing biologic drugs and oncology therapeutics, reports that its contracts and arrangements with Baxter Healthcare SA and Baxter Healthcare Corporation have now been assigned to Baxalta Incorporated as part of the spin out of the company’s biopharmaceutical business.
Xenetic has an exclusive research, development, license, and supply agreement with Baxalta (formerly Baxter Healthcare SA and Baxter Healthcare Corporation) to develop products with an extended half-life of certain proteins and molecules using the company’s PolyXen technology, whereby polysialic acid is conjugated with Baxter’s proprietary molecule(s). The resulting drug candidate is designed to create a longer-acting hemophilia drug, a polysialylated recombinant Factor VIII protein, than what is currently available on the market. Baxter also has rights that extend to treatments of the failure of blood to coagulate. Baxalta expects to begin clinical trial authorization in the European Union and investigational new drug submissions on this drug candidate in the coming months.
As a result of a revised license deal in January 2014, Xenetic is entitled to up to $100 million in potential development, regulatory, sales, and deadline extension receipts, which are contingent on the performance of Baxalta achieving certain milestones. The company is also entitled to royalties on potential net sales. In connection with this deal, Baxalta also made a $10 million equity investment at a price of $0.935 per share, which is a post money market cap of approximately $140 million.
Source: Xenetic Biosciences