Prima Biomed's subsidiary, Arthron Pty Ltd, granted to US biotechnology company Xencor, Inc. a non-exclusive licence to utilise Arthron's Fc receptor technology (FcãRIIa) for up to two years in an internal research program, and an option to receive a nonexclusive licence to utilise Arthron's Fc receptor technology for the development and commercialisation of products arising from the research program.

Under the terms of the agreement, Arthron will receive an upfront fee and a subsequent annual license fee. In the event Xencor exercises the option, Arthron will receive an additional license fee and is eligible to receive progress-dependent milestone payments and royalties on net sales of resulting products, as well as applicable sublicencing fees. Specific financial terms were not disclosed. Under the research program, Xencor will study the interaction of its engineered Fc domains with FcãRIIa, stated a release here.

Prima will retain all other rights associated with its development of the Fc receptor technology, including the rights to sublicense or develop small molecular inhibitors of the Fc receptor, therapeutic recombinant proteins and antibody-based inhibitors of the Fc receptor, whose primary use would be in the treatment of autoimmune diseases, such as rheumatoid arthritis.

Xencor, based in Monrovia, California, USA, has developed engineered Fc domains (one of two active regions of an antibody) which are designed to enhance the therapeutic properties of monoclonal antibodies.

"Xencor's planned use of Arthron's Fc receptor technology could potentially lead to improved therapeutic cancer antibodies and thus represents an area outside of Arthron's primary focus, autoimmune disease, and hence a new potential income stream", stated Marcus Clark, CEO.