Servier To Co-Develop XOMA’s Anti-inflammatory

XOMA Ltd. and Les Laboratoires Servier have signed an agreement to jointly develop and commercialize XOMA 052 in multiple indications. XOMA 052, an anti-inflammatory drug candidate, is designed to inhibit cytokine interleukin-1 beta, which is believed to be a primary trigger of pathologic inflammation in multiple diseases.

XOMA will receive approximately $35 million upfront and as much as $470 million in milestone payments and royalties. XOMA retains development and commercialization rights for Behcet’s uveitis and other inflammatory and oncology indications in U.S. and Japan. Servier has similar rights in the rest of the world.

Servier will fund the first $50 million of development expenses and 50% of further expenses for the Behcet’s uveitis indication, which is expected to enter Phase III development in 2011. Servier will fund development for diabetes and cardiovascular disease indications in exchange for worldwide rights, however XOMA retains an option to reacquire the rights to these indications in the U.S. and Japan.

“This is an important collaboration for XOMA as we gain a seasoned partner in Servier and it allows us to accelerate XOMA 052 into Phase III development this year in Behcet’s uveitis. The agreement advances our strategy of focusing on opportunities in the U.S. where we can directly participate in the development and commercialization of our novel products,” said Steven B. Engle, chairman and chief executive officer, XOMA.