X-Chem licenses epigenetic drug discovery program to Bayer Pharma

Bayer is licensing an early-stage drug discovery program directed against an epigenetic drug target. Inhibiting epigenetic targets is widely recognized as a promising emerging therapeutic option for cancer and other diseases; however, identifying small molecule inhibitors for these targets is technologically challenging.

Fueled by a proprietary library comprised of 100 billion small molecules, X-Chem’s product engine has proven highly effective for discovering novel and selective inhibitors to multiple classes of targets, including those that have historically been difficult to address.

Under the terms of the existing agreement, Bayer provided an upfront payment and ongoing research funding. X-Chem is applying its DNA-encoded small molecule library and discovery engine to the identification of novel leads to several Bayer targets from different classes and therapeutic areas.

Bayer has an exclusive option to license programs generated in the course of the collaboration. Each X-Chem program licensed by Bayer will receive an upfront exercise fee in addition to payments based on the achievement of defined pre-clinical, clinical and sales milestones, as well as royalties.

The financial terms of the licenses are not disclosed and are commensurate with terms X-Chem has established in its collaborations with other large pharmaceutical companies.

X-Chem CEO Dr Rick Wagner noted the company shares Bayer’s mission to bring innovative treatments to patients by addressing disease areas with a high unmet medical need.

"Epigenetic targets are of increasing interest for treating cancer and other life-threatening disorders, yet are particularly challenging from a drug discovery perspective. X-Chem has built its library and discovery platform to meet the challenges of tackling these highly difficult targets and enabling the discovery of multiple chemical series directly out of our primary screens," Dr Wagner added.