Bioasis sells royalty rights to four drugs for $1.2M

A California company has paid Bioasis Technologies $1.2 million for a royalty interest in four rare disease drugs the Guilford biotech is developing with an Italian health care group.

The deal announced Tuesday centers on enzymes Bioasis is investigating as potential treatments for four undisclosed lysosomal storage disorders (LSDs).

Under the deal, Xoma Corp. will collect a “low single-digit” royalty on the future net sales of each of the four enzymes, as well as an undisclosed share of any milestone payments.

LSDs are inherited, metabolic diseases marked by an abnormal build-up of toxic materials in cells due to enzyme deficiencies.

The Chiesi Group is driving the R&D and any future commercialization work.

Xoma CEO Jim Neal said his company was interested in Bioasis’ technology that delivers drugs across the brain’s filtering mechanism, known as the blood-brain barrier.

The barrier can be an obstacle to treatment in neurological disorders, rendering some drugs that work elsewhere in the body ineffective on diseases of the brain.

Xoma, based in Emeryville, Calif., describes itself as a biotech royalty aggregator. It acquires the economic rights to potential milestone and royalty payments in exchange for non-dilutive funding.

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