AbbVie and Xilio Therapeutics Collaborate on $2.1B Deal for Novel Tumor-Activated Immunotherapies

AbbVie and Xilio Therapeutics announced a collaboration and option agreement to develop novel tumor-activated immunotherapies, including masked T-cell engagers1 7.

The deal includes $52 million in upfront payments to Xilio, consisting of a $42 million cash payment and a $10 million equity investment1 4.

Xilio is eligible to receive up to $2.1 billion in additional contingent payments, including option-related fees and development, regulatory, and sales-based milestones1 4.

The collaboration aims to combine AbbVie's oncology expertise with Xilio's proprietary tumor-activation technology1 7.

Xilio has developed a platform for tumor-activated biologics, including masked multispecific molecules designed for tumor-selective activation4 7.

Xilio announced three preclinical T-cell engager programs targeting PSMA, CLDN18.2, and STEAP14.

This deal follows AbbVie's recent T-cell engager agreements, including a $1.05 billion deal with Simcere Zaiming for a phase 1-stage trispecific antibody in January 20252.

The collaboration is expected to extend Xilio's cash runway into the first quarter of 20264.

T-cell engagers have been a hot topic in recent biotech deals, with several companies making significant investments in this technology2 5.

AbbVie has been actively expanding its oncology R&D efforts, with a focus on novel immunotherapy approaches1 7.