JNJ, Xencor Sign $1.3B Licensing Deal For B-Cell Malignancies-Targeted Bispecific Antibody

Johnson & Johnson's JNJ Janssen unit has inked a licensing deal worth $100 million in upfront cash and $25 million in equity for global licensing rights with Xencor Inc XNCR.
The agreement covers Xencor's CD20/CD3 bispecific antibody plamotamab currently in Phase 1 testing against B cell malignancies.
The deal will come with up to $1.18 billion in downstream milestones as well as potential royalties in the "mid-teens to low twenties.
Janssen will hold exclusive development and commercialization rights worldwide for plamotamab, including monotherapy and combo regimens.
Xencor and Janssen will split future clinical trial cost 20-80, respectively. Those plans include a subcutaneous formulation trial for the bispecific, which is expected to begin in 2022.
Meanwhile, Xencor will exclusively fund a Phase 2 combo study of plamotamab, tafasitamab, and lenalidomide in patients with B-cell lymphoma set to start in late 2021 or early 2022.
Related: Bristol Myers Licenses Xencor's Technology Platform to Extend Half-Life of COVID-19 Antibodies.
Price Action: XNCR stock is up 1.25% at $34.09 during the market session on the last check Monday.