“Today’s announcement highlights the value to BioInvent of our n-CoDeR platform, which has led to the identification of multiple promising therapeutic antibody drug candidates, many of which are now in mid-to late-stage clinical trials. As well as reflecting XOMA Royalty’s expanded interest in mezagitamab, this transaction supports our strategy of creating value via partnerships and gives us a non-dilutive capital injection that bolsters our balance sheet so that we can continue to focus on advancing our own clinical drug development programs,” says Martin Welschof, Chief Executive Officer of BioInvent.

A 2003 cross-licensing agreement

The future royalty and milestone economics interest in mezagitamab originated from a 2003 cross-licensing agreement covering XOMA Royalty’s legacy bacterial protein expression technology and BioInvent’s n-CoDeR antibody library.

Milestones of up to USD 16.25 million

Under the terms of XOMA Royalty’s purchase of BioInvent’s economic interest in mezagitamab, XOMA Royalty paid to BioInvent USD 20 million at closing today and will pay an additional USD 10 million upon mezagitamab achieving a specific pre-defined regulatory milestone associated with receiving marketing approval in the IgA nephropathy indication from the U.S. Food and Drug Administration.

With its existing entitlement, plus the newly acquired economics from BioInvent, XOMA Royalty will be entitled to milestones of up to USD 16.25 million from Takeda, and mid-single digit royalties on future mezagitamab commercial sales.