Otsuka Pharmaceutical and X-Chem announced that they have signed a collaborative research agreement to advance the discovery process for new Otsuka drug compounds.

Under the terms of the agreement, X-Chem will utilize its DNA-encoded library (DEXTM) screening and informatics platform to search for novel drug leads for several Otsuka discovery targets. X-Chem received an initial research fee from Otsuka upon the signing of the agreement, and is eligible for future payments based on the achievement of research and development milestones, as well as royalties and sales milestones on compounds identified under the collaboration that receive regulatory approval. Otsuka will furnish several target proteins to X-Chem, independently conduct clinical trials for any compounds identified, and retain exclusive rights to globally commercialize any products resulting from the collaboration.

Toshiki Sudo, executive director of drug discovery at Otsuka noted, "We are engaged in research and development of unique therapeutic drugs that are valuable to patients, particularly in disease areas related to the central nervous system, renal circulation, and in oncology. We anticipate that our drug discovery research will be further enhanced through X-Chem’s breakthrough technology, leading to the creation of innovative pharmaceuticals."