X-Chem enters 3rd Japanese discovery deal in as many months

Privately-held US biotech X-Chem Pharmaceuticals says it has entered into another drug discovery partnership with a Japanese pharmaceutical firm in the space of around three months, this time partnership with Ono Pharmaceutical (TYO: 4528).

Under the terms of the agreement X-Chem will apply its proprietary DEX libraries, which contain over 120 billion small molecules, toward the discovery of new drug leads against multiple promising, high-impact oncology targets. Ono will have the option to license identified lead compounds and will be responsible for further development and commercialization of any resulting programs.

X-Chem receives an undisclosed upfront payment, research and licensing fees, and is eligible for additional payments linked to the successful achievement of pre-clinical and clinical development markers, as well as regulatory milestones, in addition to royalties on sales of products originating from the collaboration. No further financial terms will be disclosed.