Xoma Ltd. and Takeda Pharmaceutical Company Limited, have entered into an agreement for therapeutic monoclonal antibody discovery and development. The collaboration is intended to capitalize on Xoma's comprehensive antibody discovery, development and production technologies and expertise.

The agreement 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. Payments to Xoma could exceed $100 million before royalties over the life of the collaboration.

Using its extensive collection of phage display libraries and antibody optimisation technologies, Xoma will discover therapeutic antibodies against multiple targets selected by Takeda. Other Xoma activities will 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 commercialization of drugs after IND submission, and is granted the right to manufacture once the product enters into phase 2 clinical trials.

"Xoma's extensive antibody discovery and development expertise and technologies fit well with Takeda's objective of building a strategic presence and pipeline in therapeutic antibodies. We look forward to working with our new partner," said John L. Castello, chairman of the board, president, and chief executive officer of Xoma.

"We are pleased with the conclusion of the agreement with Xoma, which has state-of-the-art technology in the antibody field," said Shigenori Ohkawa, PhD, general manager of Pharmaceutical Research Division of Takeda."We believe that the collaboration with Xoma will accelerate our drug discovery and development activities in therapeutic antibodies, a field that continues to grow as an important source of new medicines."