Xenetic Biosciences, Inc. has announced that its contracts and arrangements with Baxter Healthcare SA ("Baxter SA") and Baxter Healthcare Corporation (together referred to as "Baxter") have now been assigned to Baxalta Incorporated ("Baxalta") as part of the spin out of the company's biopharmaceutical business.
Xenetic has an exclusive research, development, license and supply agreement with Baxalta (formerly Baxter Healthcare SA and Baxter Healthcare Corporation) to develop products with an extended half-life of certain proteins and molecules using the Company's patent protected PolyXen® technology whereby polysialic acid ("PSA" - a chain of polysialic acids) is conjugated with Baxter's proprietary molecule(s).
The resulting drug candidate is designed to create a longer-acting haemophilia drug, a polysialylated recombinant Factor VIII ("rFVIII") protein, than what is currently available on the market. Baxter also has rights that extend to treatments of the failure of blood to coagulate. Baxalta expects to begin Clinical Trial Authorization (CTA, EU) and Investigational New Drug (IND, US) submissions on this novel drug candidate in the coming months.
As a result of a revised license deal in January 2014, the Company is entitled to up to $100 million in potential development, regulatory, sales and deadline extension receipts, which are contingent on the performance of Baxalta achieving certain milestones.
The Company is also entitled to royalties on potential net sales. In connection with this deal, Baxalta also made a $10 million equity investment at a price of $0.935 per share, which is a post money market cap of approximately $140 million.
Baxalta Incorporated is a newly established global biopharmaceutical leader developing, manufacturing and commercializing therapies for orphan diseases and underserved conditions in hematology, oncology and immunology.
Baxalta is a related party of Xenetic, with a share ownership of approximately 8.7%.