Xbrane and Stada Arz look to co-develop Lucentis biosimilar

Swedish firm Xbrane Biopharma (Nasdaq OMXS: XBRANE) and Germany’s Stada Arzneimittel (SAZ: Xetra) have linked up to co-develop Xlucane, a biosimilar version of top-selling ophthalmic drug Lucentis (ranibizumab), which is marketed by Swiss pharma giants of Novartis (NOVN: VX) and Roche’s (ROG: SIX).

News of the deal saw Xbrane’s shares leap 28.67% to 63.50 Swedish kronor in morning trading, while Stada was virtually unchanged.

The collaboration between Xbrane and Stada is based on a co-development agreement, meaning that the companies will equally contribute to development expenses and share profits from commercialization in a 50/50 split. To enter into this agreement, Stada will make an upfront payment to Xbrane of 7.5 million euros ($8.8 million).