By Colin Kellaher
AbbVie and Xilio Therapeutics have inked a collaboration and option-to-license agreement potentially worth more than $2 billion to clinical-stage biotechnology company Xilio.
The companies on Wednesday said they will to work to develop novel tumor-activated, antibody-based immunotherapies, including masked T-cell engagers, using Xilio's proprietary platform technology for tumor-activated biologics.
Xilio said it will receive $52 million in total upfront payments, including a $10 million equity investment at $2.30 a share from North Chicago, Ill., biopharmaceutical company AbbVie, 3.5 times Tuesday's closing price of 65.7 cents.
Shares of Xilio were recently up more than 140% to $1.60 in premarket trading.
Xilio said it will also be eligible to receive up to about $2.1 billion in total contingent payments for option-related fees and milestones, along with royalties on product sales.
The Waltham, Mass., company said the initial funds from AbbVie will extend its cash runway into the first quarter of 2026.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 12, 2025 07:57 ET (12:57 GMT)
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