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Investing.com -- Shares of Xilio Therapeutics Inc surged 175% on Wednesday in pre-market trading following the announcement of a collaboration and option agreement with pharmaceutical giant AbbVie to develop novel tumor-activated immunotherapies.
The deal involves a combination of AbbVie’s oncology expertise and Xilio’s proprietary tumor-activation technology.
The collaboration is set to focus on the development of antibody-based immunotherapies, including masked T-cell engagers, using Xilio’s clinically-validated platform technology for tumor-activated biologics.
Xilio’s technology aims to achieve tumor-selective activation, which could potentially minimize systemic adverse events and improve the efficacy of cancer treatments.
Xilio stands to receive $52.0 million in upfront payments, including a $10.0 million equity investment from AbbVie.
Additionally, the biotech firm is eligible for up to approximately $2.1 billion in contingent payments, option-related fees, milestones, and tiered royalties.
The financial terms of the agreement highlight the potential value of Xilio’s tumor-activated biologics platform and the high stakes involved in the development of effective cancer therapies.
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