Novartis and Xencor drug producing companies have struck a deal over two new cancer drugs. The two companies signed a license agreement to begin developing two drugs: one for acute leukemya and the other for B-cell malignancies.
These two new therapeutics are called XmAb14045 and XmAb1376 and are expected to be released in 2016. The chief executive from Xencor said that the company is very excited to start the partnership. The agreement is expected to broaden the scope of drug development and commercialization in America.
This will lead to better tolerated medicines, newer molecules and a better chance at survival for cancer patients. The terms of the license make collaboration and shared development costs possible. The agreement will allow for the two companies to sell their products in the US and worldwide, and get many millions of dollars for doing so.
This is because the two companies will have patents over the drugs and the new molecules will be protected by copyright for many years to come.
So far, shares of the two companies which work in biopharmaceuticals have gone up by as much as 35%. Novartis has paid 150 million dollars to get rights to sell two important drugs developed by Xencor. The entire deal , which expands for many years to come, has a value of over 2.4 billion dollars.
Novartis is a big pharmaceutical company in Switzerland. It made a deal with Xencor, a biotechnological company based in California. The two new cancer drugs will target the early stages of leukemya, giving patients increased chances at survival.
The license allows the two companies to undertake development of 10 other potentially healing molecules. While Xencor will have commercial rights for the US, Novartis will hold commercialization rights for the rest of the world.
To put it in simpler terms, Novartis came up with the idea, but the money to put it into place have come from Xencor. The agreement sent the two companies’ actions sky high on the stock market. One Xencor share costs almost sixteen dollars.
However, Novartis is not the first partner for Xencor. Last September, Xencor made a deal with Thousand Oaks, to buy specific technology which targets inflamation and cancer imuno-therapy.
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