Xenetic Contracts Assigned to Baxalta

Xenetic Biosciences’ contracts and arrangements with Baxter Healthcare SA and Baxter Healthcare Corp., have now been assigned to Baxalta Inc. as part of the spin out of the company’s biopharmaceutical business. 
 
Xenetic has an exclusive research, development, license and supply agreement with Baxalta to develop products with an extended half-life of certain proteins and molecules using its PolyXen technology. The resulting drug candidate is designed to create a longer-acting haemophilia drug, a polysialylated recombinant Factor VIII (“rFVIII”) protein, than what is currently available on the market. 
 
Baxter also has rights that extend to treatments of the failure of blood to coagulate. Baxalta expects to begin Clinical Trial Authorization (CTA, EU) and Investigational New Drug (IND, U.S.) submissions on this drug candidate in the coming months.
 
As a result of a revised license deal, Xenetic is entitled to as much as $100 million in potential development, regulatory, sales milestones, as well as royalties on sales. In connection with this deal, Baxalta also made a $10 million equity investment.