XBiotech sells rights to investigational drug bermekimab for up to $1.35 billion

Texas, USA-based XBiotech (Nasdaq: XBIT) revealed on Saturday that it has entered into a definitive agreement with Janssen Biotech, part of US healthcare giant Johnson & Johnson (NYSE: JNJ), to sell its novel antibody, bermekimab, that neutralizes interleukin-1 alpha (IL-1⍺). IL-1⍺ promotes disease-causing inflammation in a wide range of medical conditions.

Bermekimab is in Phase II development for the treatment of atopic dermatitis and hidradenitis suppurativa. It is the only antibody targeting IL-1a currently in clinical development and has the potential for superior efficacy and safety compared to the current standard of care.

Under the terms of the deal, Janssen will acquire all rights to bermekimab and XBiotech will be free to use its True Human Antibody discovery program to develop new antibody therapeutics that target IL-1⍺ to treat non-dermatological diseases. XBiotech plans to re-enter clinical development expeditiously with a next generation anti-IL-1⍺ therapeutic.