OXIS International, Inc. (OTCMKTS:OXIS)’s wholly owned subsidiary arm called as Oxis Biotech, Inc. announced the completion of a definitive licensing and development deal with MultiCell Immunotherapeutics, Inc. . The deal revolves around the development functions of certain antibody-drug conjugates which are considered to be beneficial for treating multiple myeloma and triple-negative breast cancer.
As per the agreed deal, MultiCell Immunotherapeutics will work on three ADC product candidates. These will have OXIS’ lead drug candidates OXS-4235 and OXS-2175. Oxis International subsidiary paid a license fee of $500,000 to MCIT. It will also reimburse MultiCell Immunotherapeutics up to $1.125 million as development costs to develop the three ADCs that are licensed to the company. In event of completion of all clinical development, OXIS will make an additional payment of $22.75 million to MCIT. It will also pay a royalty of 3% of net annual worldwide sales.
MultiCell Immunotherapeutics proprietary ADC technology works on the concept of multivalent, cleavable linkers. They enable tethered drugs to come out extracellularly or intracellularly after they are bounded with the antibody to the target cell. Moreover, the linkers are formulated to attach multiple drugs and then to release them in the original form without any modification. Oxis International subsidiary will significantly benefit from the new technology.
OXIS International, Inc. (OTCMKTS:OXIS) subsidiary CEO Anthony Cataldo said that the management is pleased to include the new technology in the portfolio. The antibody-drug conjugates can be termed as the wave of the future. The new technology permits the company to leverage its existing technologies including OXS-4235 and OXS-2175 as targeted therapies. This will result in better yield and efficacy as the company develops its therapies. As per a report, there were more than 200,000 new cases of invasive breast cancer recorded in last year in the U.S. which indicates the need of an effective treatment.