As per the alliance, Genentech has an exclusive license to compounds and a non-exclusive license to diagnostics from Xenon for development and commercialization of products.
Xenon on the other hand is entitled to receive an undisclosed upfront payment, research funding and research, development and commercialization milestone payments, totaling up to $646m.
Xenon will also receive royalties on sales of products resulting from the collaboration.
Xenon president and CEO Simon Pimstone said Genentech would be a suitable partner as the two companies share a common emphasis on using human genetics for drug development.
"Further, this collaboration allows Xenon to both deepen and broaden our pipeline of novel medicines in development," Pimstone added.