Xenon Pharmaceuticals Inc. and Takeda Pharmaceutical Company Limited have entered into an exclusive agreement to develop and commercialize oral formulations of Xenon's lead product for pain, XEN401, in Japan and certain Asian countries. XEN401 is currently in preclinical development.

Under terms of the agreement, Xenon exclusively licensed to Takeda the right to develop and commercialize oral formulations of XEN401 in Japan and certain Asian countries. Takeda is responsible for all development and commercialization activities and related costs in the licensed territories. Xenon will receive an upfront cash payment and is eligible to receive development and regulatory milestone payments as well as sales? based milestone payments upon successful commercialization of XEN401. Takeda will pay Xenon royalties on all product sales. In addition, Takeda has an option to backup compounds to XEN401 developed by Xenon.

"We are very excited to conclude this agreement with Takeda," said Simon Pimstone, president and CEO of Xenon. "Takeda is Japan's leading pharmaceutical company with significant development and commercialization experience. Takeda is our ideal partner to fully develop and Commercialize XEN401 in these territories."

"We believe that XEN401 is a compelling novel analgesic for the potential
treatment of multiple pain disorders and this partnership further validates this perspective", added Rajender Kamboj, Xenon's executive vice president, Drug Discovery.

"There is a genuine need for improved pain treatments and such treatments are strategically linked to Takeda's core therapeutic areas including diabetes, oncology, and bone/joint disease," said Yasuchika Hasegawa, President of Takeda. "We have been very impressed by Xenon and we look forward to working with them in pursuing the clinical development of XEN401."