Agenus Inc., an immunotherapy company developing innovative treatments for patients with cancer, announced that it has completed the previously announced acquisition of XOMA Corporation’s antibody manufacturing pilot plant and capabilities. XOMA’s experienced chemistry, manufacturing, and controls (CMC) team has joined Agenus and will continue to operate the facility.

This pilot plant will enable the company to manufacture checkpoint modulator (CPM) antibodies for its own programmes and those of its collaborators. The facility is expected to provide Agenus’ antibody supply requirements through clinical proof-of-concept studies.

“By having this in-house capability, we will reduce our dependence on outside CMOs, and will benefit from higher quality outcomes. This acquisition, along with our significant antibody discovery and optimization capabilities and access to state-of-the-art cell line development, should provide us with key advantages in ensuring speed and quality in our product development efforts,” said Garo Armen, Ph.D., chairman and CEO of Agenus. “We look forward to working with the new CMC team and welcoming them to the company.”

Agenus’ CPM discovery capabilities now include a broad and complementary suite of technologies, including a phage display library exclusively licensed from IONTAS, Agenus’ mammalian Retrocyte Display, and the SECANT yeast display platforms, as well as a cell line development technology acquired from Selexis. These technologies, combined with the new GMP manufacturing facility, are expected to result in greater overall efficiencies and faster, improved product development and manufacturing at significantly reduced costs. Agenus’ development capabilities should allow the company to scale-up candidate production and to expand its pipeline of CPMs, leading to additional partnership opportunities.

Under the terms of the agreement with XOMA, Agenus paid $5.0 million in cash and $500,000 in shares of Agenus common stock at closing, with an additional $500,000 in shares of Agenus common stock payable at a later date. In addition to the new manufacturing facility and the team of qualified CMC professionals, Agenus also gained access to certain XOMA technologies. Agenus expects to realize substantial cost savings from the new manufacturing pilot plant as compared to engaging third party contract manufacturers.