Xenon in $646 million deal with Roche unit

Canada based Xenon Pharmaceuticals, a privately-owned, clinical genetics-based drug discovery and development company, has entered into a strategic alliance with Genentech, a US subsidiary of Swiss drug major Roche (ROG: SIX), to discover and develop compounds and companion diagnostics for the potential treatment of pain.

Under the terms of the accord, Xenon will receive an undisclosed upfront payment, research funding and is eligible to receive research, development and commercialization milestone payments, totaling up to $646 million for multiple products and indications. In addition, Xenon will receive royalties on sales of products resulting from the collaboration.

Xenon and Genentech will collaborate on the discovery of new therapeutic approaches for treating pain. The agreement provides Genentech with an exclusive license to compounds and a non-exclusive license to diagnostics from Xenon for development and commercialization of products. No further details of the deal were disclosed.