Tanox Inc. has received a $12.8 million net milestone payment from Genentech Inc. based on Xolair (omalizumab) achieving 2005 US sales of more than $300 million.

The payment was made under terms of the cross-licensing agreement between Tanox and Genentech with respect to certain anti-IgE antibodies. Xolair, the first humanised therapeutic antibody to be approved for the treatment of moderate-to-severe persistent allergic asthma in patients 12 years of age and above, was developed by Tanox, Genentech and Novartis Pharma AG, claims the company release.

"The milestone payment is significant for two reasons. From a financial standpoint, the cash we received will be used to offset a portion of our research and development expenditures, which is a valuable benefit for a company of our size. In addition, surpassing $300 million in sales in 2005 shows that Xolair is continuing to gain acceptance among physicians and patients," said Nancy Chang, Tanox president and chief executive officer.

The Food and Drug Administration approved Xolair in June 2003. Xolair received approval from the European Commission in October 2005 as a therapy to improve asthma control in adults and adolescents with severe persistent allergic asthma. The drug has been launched in the United Kingdom and Germany. Genentech and Novartis market Xolair in the US Novartis has marketing rights in the rest of the world.

Tanox is a biotechnology company specialising in the discovery and development of monoclonal antibodies. The company develops innovative bio-therapeutics for the treatment of immune-mediated diseases, inflammation, infectious disease and cancer.