Neutralizing a pro-inflammatory molecule known as interleukin-6 (IL-6), the new antibody is expected to represent a significant improvement compared to existing agents that have already entered clinical trials and into the market.
As the novel antibodies are directly cloned from a human immune response, they are believed to be safe and well tolerated.
XBiotech research director Dr. Sushma Shivaswamy said the company identified a new True Human antibody from its discovery engine.
"Identifying these antibodies from the human population is the culmination of a coordinated and technically challenging program," Shivaswamy added.
"Seeing these antibodies ultimately used in the clinic is particularly satisfying. We hope many patients will benefit from this natural human therapeutic."
The company expects to make the antibody ready for clinical studies in early 2014.