Xoma Ltd. and Takeda Pharmaceutical Company Limited have amended their existing agreement to increase the number of potential therapeutic antibody programmes under the collaboration initiated in November of 2006.

With this expansion, Xoma estimates the aggregate upfront, R&D funding, milestone and other payments could exceed $230 million before royalties over the life of the agreement. Since entering the original agreement four months ago, Xoma has received or is otherwise due approximately $8 million as various collaboration-related payments.

"We are pleased that, in connection with the expiration of certain exclusivity obligations under an agreement with another entity, we are expanding our collaboration with Takeda to include additional therapeutic antibody programmes in oncology. Xoma is well positioned to capitalize on the growing demand for monoclonal antibody solutions and this expanded agreement validates our strengths in translating targets into therapeutic product candidates and advancing their development thereafter," said John L. Castello, chairman of the board, president and chief executive officer of Xoma.

"Takeda has an extensive collection of cancer-related disease targets that hold promise for therapeutic intervention using monoclonal antibodies," said Shigenori Ohkawa, PhD, General Manager of Pharmaceutical Research Division of Takeda. "By expanding our collaboration with Xoma, we are able to accelerate our antibody drug discovery and development efforts in oncology."

Xoma and Takeda began a collaboration in November of 2006 under which Xoma is using its extensive collection of phage display libraries and antibody optimisation technologies to discover therapeutic antibodies against multiple targets selected by Takeda. Other Xoma activities are expected to include preclinical studies to support regulatory filings, cell line and process development, and production of antibodies for initial clinical trials. Takeda will be responsible for clinical trials and commercialisation of drugs after IND submission, and is granted the right to manufacture once the product enters into phase 2 clinical trials.

The collaboration calls for Takeda to make up-front and milestone payments to Xoma, fund Xoma's R&D activities including manufacturing of the antibodies for preclinical and early clinical supplies, and pay royalties to Xoma on sales of products resulting from the collaboration.

Under the November 2006 collaboration agreement, payments to Xoma potentially could have exceeded $100 million before royalties over the life of the collaboration. Today's announced amendment to the collaboration provides the potential for Takeda to add an undisclosed number of new antibody discovery and development programmes to those specified in the initial agreement and raises the estimated potential payments to Xoma to $230 million before royalties.