Janssen Pharmaceuticals Completes Acquisition of XBiotech's Bermekimab Antibody Portfolio

On December 31, 2019, VCBeat (WeChat Official Account: vcbeat) learned that Janssen Pharmaceuticals announced the completion of its acquisition of XBiotech’s bermekimab antibody product line. Upon closing of the transaction, Janssen Pharmaceuticals paid XBiotech $750 million, with $75 million held in escrow by a bank for 18 months. If Janssen Pharmaceuticals develops bermekimab for indications beyond dermatology, XBiotech will be eligible to receive up to an additional $600 million from Janssen Pharmaceuticals upon completion of the relevant commercialization licensing. In addition to the acquisition of bermekimab, Janssen Pharmaceuticals and XBiotech entered into manufacturing supply and clinical services agreements. Revenue from these agreements is expected to generate positive cash flow for XBiotech over the next two years.

Janssen Pharmaceuticals is dedicated to the field of medicine and committed to providing effective and affordable medications for the treatment of relevant diseases. The company can make the greatest impact in the following areas: cardiovascular and metabolic diseases, immunology, infectious diseases and vaccines, neuroscience, oncology, and pulmonary arterial hypertension. Janssen Pharmaceuticals has established robust partnerships with governments, patient advocacy groups, healthcare professionals, as well as global academic and business communities, facilitating the company’s faster and more effective growth.

Bermekimab, an anti-IL-1α monoclonal antibody acquired by the company, is currently in Phase II development for the treatment of atopic dermatitis and hidradenitis suppurativa. It is the only antibody targeting IL-1α currently in clinical development, offering superior efficacy and safety compared to current standard-of-care treatments.

Dr. David M. Lee, Head of the Immunology Therapeutic Area at Janssen Pharmaceuticals, stated, “The addition of bermekimab to our portfolio builds on our heritage in immunodermatology while extending our commercial reach into two additional disease areas where we have not previously operated: atopic dermatitis and hidradenitis suppurativa.”

John Simard, President and Chief Executive Officer of XBiotech, commented, “We are pleased that Janssen Pharmaceuticals has acquired bermekimab, and we look forward to seeing bermekimab’s superior efficacy and safety in ongoing dermatology clinical trials and other studies.”

Headquartered in Texas, USA, XBiotech is an integrated global biopharmaceutical company dedicated to the development and commercialization of therapeutic antibodies. The company has multiple pioneering clinical trial programs in medical fields such as dermatology, oncology, diabetes, cachexia, and cardiovascular diseases. XBiotech is currently developing a series of treatments that harness the human body’s natural immunity as a source for new drugs, a therapy with the potential to redefine the standard of care for a range of diseases.

(Compiled by: Wang Jingna)