Xencor converts Genentech collaboration to royalty/milestone deal; up to $600M in milestones

Xencor Inc

New agreement replaces cost/profit-sharing with tiered royalties (low double-digit to mid-teens percent) starting June 1, 2024.
Xencor eligible for up to $600M in milestones: $115M development, $185M regulatory, $300M sales-based.
Genentech assumes sole responsibility for all clinical, regulatory, and commercial activities post-effective date.
Original collaboration agreement remains in effect until May 31, 2024; Xencor had exercised royalty conversion option.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Xencor Inc entered into Amended and Restated Collaboration and License Agreement with Genentech, Inc. and F. Hoffmann-La Roche Ltd valued at $600 million in milestones; tiered royalties from low double-digit to mid-teens percentages (effective 2024-06-01).

Action: entry
Agreement: license
Counterparty: Genentech, Inc. and F. Hoffmann-La Roche Ltd
Value: $600 million in milestones; tiered royalties from low double-digit to mid-teens percentages
Effective: 2024-06-01

Exact text from the filing

On November 14, 2023, the Company entered into an Amended and Restated Collaboration and License Agreement (the “New Collaboration Agreement”) with Genentech, Inc., a Delaware corporation, having its principal place of business at 1 DNA Way, South San Francisco, California 94080 (“GNE”), and F. Hoffmann-La Roche Ltd, a corporation organized and existing under the laws of Switzerland, having its principal place of business at Grenzacherstrasse 124, CH 4070 Basel, Switzerland (“Roche”) (GNE and Roche, collectively, “Genentech”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Xencor Inc entered into Royalty Conversion arrangement under the New Collaboration Agreement with Genentech, Inc. and F. Hoffmann-La Roche Ltd valued at tiered royalties on a product-by-product and country-by-country basis ranging from low double-digit (effective 2024-06-01).

Action: entry
Agreement: collaboration
Counterparty: Genentech, Inc. and F. Hoffmann-La Roche Ltd
Value: tiered royalties on a product-by-product and country-by-country basis ranging from low double-digit
Effective: 2024-06-01

Exact text from the filing

Pursuant to the Royalty Conversion, in connection with any program under the Original Collaboration Agreement, including XmAb306 (RO7310729), the Company will be entitled to receive tiered royalties on a product-by-product and country-by-country basis ranging from low double-digit to mid-teens percentages.

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Xencor Inc filing history →

Source: SEC EDGAR

accession 0001326732-23-000044

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