XO1, a life sciences spin-out from Cambridge University, has been acquired by Janssen Pharmaceuticals, a research and development subsidiary of US-based pharmaceutical giant Johnson & Johnson (J&J).
Although neither the size nor the structure of the deal has been made public, the deal is a big win for Cambridge, J&J, and XO1’s early-stage investor Index Ventures.
Index invested at the launch of XO1, highlighted as one of Global University Venturing’s spin-outs to watch, back in 2013 in an $11m deal as the sole investor. Index made the investment out of a $200m investment vehicle backed by J&J and UK-based peer GlaxoSmithKline. The exit is a boon for Index’s model which is attempting to lure investors to early-stage development opportunities.
Francesco De Rubertis, partner at Index, told news provider Fierce Biotech: “It is an important preclinical deal, and it really benchmarks favourably,” adding, “We want to attract more capital. It’s important to demonstrate that it’s a viable business model.”
XO1 is developing and commercialising ichorcumab, an antibody created by researchers at the University of Cambridge and affiliated hospital Addenbrooke. Named after Ichor, which in Greek mythology was the ethereal fluid in the blood of the gods that conveyed their immortality, the antibody has been described as the “holy grail” of anticoagulants, and could save millions of lives from heart attacks and strokes. What separates XO1’s technology from other anticoagulants, also used to treat heart attacks and strokes, is that the Cambridge firm’s anticoagulant doesn’t cause additional bleeding which can cause severe complications for patients.
Like another UK discovery, that of Penicillin by Alexander Fleming, it was a chance discovery. The antibody was originally discovered naturally occurring in a patient who arrived at Addenbrooke’s accident and emergency department with a head injury and anticoagulation consistent with severe haemophilia. Doctors initially thought the wound combined with high anticoagulation would prove lethal, but were surprised to find that the bleeding stopped normally.
Peter DiBattiste, global development head of cardiovascular at Janssen Research & Development, said: “Ichorcumab provides an excellent complement to the Janssen cardiovascular portfolio. Given Janssen’s leadership in the fields of anticoagulation and biologics, we are well positioned to explore the potential of this next generation anticoagulant.”