XBiotech Inc (NASDAQ: XBIT) was one of the top gainers in yesterday’s session. The stock gained by over 75.36% to close the day at $19.50. This came after the company announced that it had entered an agreement with Janssen Biotech Inc to sell its novel antibody called bermerkimab. This is an antibody that is used in neutralizing interleukin-1 alpha, which triggers inflammation that causes diseases in several medical conditions.
Under the deal, Janssen Biotech will have all the rights to the antibody bermerkimab. This will give XBiotech the space to focus on it human antibody discovery program. It will use it to develop novel antibodies for interleukin-1 alpha. The company has also announced that, it will restart clinical development for a next-generation antibody interleukin-1 alpha. The company will also use Janssen’s services for clinical trials for two phase-II clinical studies that are in progress.
Under the deal, Janssen will pay XBiotech $700 million in cash. The company will also receive an extra $600 million in milestone payments. It expects to generate revenues from the manufacture and supply of clinical service agreements over the next 24-months. It also announced that, it intends to use the revenues to develop other antibodies besides interleukin-1 alpha. It also intends to use some of the proceeds from the deal to repurchase its stock.
According to the CEO, John Simard, the company is happy with the deal. He stated that the acquisition by Janssen will help increase awareness about its therapeutics. He added that, the deal will help the company display the power of its human antibody discovery platform.
Looking at the charts, XBiotech gapped up, and traded between $22.95 and $18.67 before closing the day at $19.50. Volumes in the day stood at 4.84 million.
About XBiotech Inc
XBiotech Inc is a biopharma company that discovers, makes and commercializes true human monoclonal antibodies. It has its headquarters in Austin, Texas.