Under the agreement, Servier will pay around $35m as an upfront payment and, approximately $470m of milestone payment and tiered royalties.
The agreement gives development and commercialization rights for Behcet’s uveitis and other inflammatory and oncology indications to Servier for rest of the world except US, as the US right will be retained by XOMA.
XOMA will be responsible for XOMA 052 manufacturing throughout clinical development and launch and anticipates being a long-term manufacturer. This adds to the company’s potential profit participation during the life of the commercial product.
Additionally, Servier is entitled to pay around $35m in an upfront payment consisting of $15m and a 15 euro loan, which does not have to be repaid until 2016.
XOMA chairman and CEO Steven Engle said that this agreement substantially increases their cash resources while reducing future cash requirements, provides a pathway to commercialization of XOMA 052 in the near term, and supports development in diabetes and cardiovascular disease while maintaining the ability to participate in these programs.