Xoma Ltd. has granted Wyeth a non-exclusive, worldwide license for Xoma’s expression technology.

Under the agreement, Wyeth receives a license to use Xoma’s technology for the development and production of recombinant proteins. Details of the initial payment and future contingent payments to Xoma were not disclosed.

“We are pleased that Wyeth has licensed Xoma’s bacterial expression technology for future development opportunities and anticipate a very positive relationship between the companies,” said John L. Castello, Xoma’s chairman, president and chief executive officer.

Bacterial cell expression technology (BCE) is an enabling technology used to discover and screen, as well as develop and manufacture, recombinant proteins and antibodies for commercial purposes. BCE is also a key technology used in multiple systems for high-throughput screening of antibody domains. Expression of antibodies by phage display technology, for example, depends on the expression and secretion of antibody domains from bacteria as properly folded, functional proteins.

Xoma has received ten US patents to date relating to aspects of its BCE system, including six patents that broadly cover the secretion of immunoglobulins from bacteria, including antibody fragments such as Fab and single-chain antibodies. Corresponding foreign patents have also been granted. Xoma’s patent estate is applicable to the practice of antibody phage display and other antibody screening applications.

Currently, there are two antibody products in late-stage clinical testing that are manufactured using Xoma’s BCE technologies. To date, Xoma has granted bacterial cell expression licenses to approximately 35 companies.