Latham Advises AbbVie on Collaboration and Option Agreement With Xilio Therapeutics and Related Equity Investment

AbbVie (NYSE: ABBV) and Xilio Therapeutics, Inc. (Nasdaq: XLO), a clinical-stage biotechnology company discovering and developing tumor-activated immuno-oncology therapies for people living with cancer, has announced a collaboration and option-to-license agreement to develop novel tumor-activated, antibody-based immunotherapies, including masked T-cell engagers, leveraging Xilio's proprietary technology.

Under the terms of the agreement, Xilio will receive US$52 million in total upfront payments, including a US$10 million equity investment, and will be eligible to receive up to approximately US$2.1 billion in total contingent payments for option-related fees and milestones plus tiered royalties.

Latham & Watkins LLP advised AbbVie in the transaction. The collaboration and option agreement was led by New York partner Aaron Gardner and San Diego counsel Robert Yeh, with associate Patrick Chew; the equity investment was led by New York partner Nathan Ajiashvili and counsel Lindsey Mills.