Xencor Inc (NASDAQ: XNCR), a clinical-stage biopharmaceutical company developing engineered monoclonal antibodies for the treatment of autoimmune disease, asthma and allergic disease, and cancer, announced yesterday that it has signed a research and license agreement with Genentech, a member of the Roche Group.

The contract has been signed to develop and commercialise novel IL-15 cytokine therapeutics, including XmAb24306. XmAb24306 is an IL-15/IL-15R alpha cytokine complex engineered with Xencor's bispecific Fc domain and Xtend Fc technology and is Xencor's most advanced preclinical cytokine program.

According to the terms of the contract, both firms will co-develop XmAb24306 and other potential IL-15 programs, in which the companies will share development costs and profits. Genentech will commercialise medicines worldwide, and Xencor has the option to co-promote in the United States.

Additionally, the firms will engage in a two-year research program to discover new IL-15 drug candidates, including those targeted to specific immune cell populations. Genentech will pay Xencor USD120m upfront, and Xencor will be eligible to receive up to USD160m in development milestones for the XmAb24306 program and up to USD180m in development milestones for each new IL-15 drug candidate. The deal is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and closing is likely to occur in the first half of 2019.