Xencor rises after partnering with J&J to develop cancer drug

Xencor

04/10/2021 18:57

** Drug developer Xencor Inc's shares  XNCR.O  rise ~4% to
$35.08
    ** Co says it has entered into a partnership with Johnson &
Johnson  JNJ.N  to develop and commercialize experimental drug,
plamotamab, that is currently in early-stage trials for treating
blood cancers non-Hodgkin lymphoma and chronic lymphocytic
leukemia 
    ** The partnership also includes the development of other
antibody candidates that activate immune cells called T-cells to
fight some types of cancer
    ** Under the deal, JNJ to pay 80% and XNCR to pay 20% of
costs for plamotamab's development; JNJ to receive global
exclusive development and commercialization rights to the drug
    ** XNCR to receive an upfront payment of $100 mln and is
also eligible to receive up to $1.18 bln in potential milestone
payments and tiered royalties on sales; JNJ to also buy $25 mln
of newly issued shares of co's common stock  urn:newsml:reuters.com:*:nBw6rTjL7a
    ** Co first collaborated with JNJ last year to develop a
specific antibody candidate for treating prostate cancer
 urn:newsml:reuters.com:*:nBwbSfywXa
    ** Including session's close, stock down 19.55% YTD


 (Reporting by Oishee Majumdar in Bengaluru)
 ((oishee.majumdar@thomsonreuters.com;))