Corporate Strategy

XBiotech is launching a breakthrough drug that could treat millions of people around the world. This is because a single drug, that blocks chronic inflammation, offers a treatment for many different kinds of debilitating and life threatening conditions. The potential for this drug to reach millions of lives is staggering.

From a business point of view, the potential markets are vast.

Opening up vast new markets requires a drug that is extremely well tolerated and safe—but it must also be affordable. Safety and tolerability is inherent in True Human™ antibody technology.

Delivering a product to market that is affordable is a different matter.

Clearly current drug development costs are too high to enable development of new cutting-edge medicines that are also widely affordable. To open up new markets with a less-costly medication demanded nothing less than a new approach to commercialization.

There were two possibilities to get a drug to market with less capital: shorten the period to market and thus reduce the time spent in pre-revenue mode; develop a more cost sensitive operational strategy.

To shorten the period to market all key operations were assembled under one roof. This integration allows us to respond dynamically to opportunities and challenges, reduce dependence on costly outsourcing, and to take greater control of our timelines.

A major capital and recurring cost in our business is, however, related to manufacturing. Manufacturing infrastructure can result in $ billions in fixed and recurring costs. From the onset, we thus set out to develop innovative manufacturing solutions. We sought to incorporate the latest technologies to create the simplest manufacturing process possible. By doing this, we have dramatically reduced infrastructure needs and operating costs going forward.

At XBiotech we plan to deliver a breakthrough treatment to more physicians and patients than any other biological drug to date. By integrating operations, and rethinking how we make drugs, we can crunch timelines and keep operating and infrastructure costs down. In the process, we are creating a whole new expectation for the cost of drug development.

We believe the plan and core infrastructure is in place to develop the world’s first True Human™ antibody therapy to treat chronic inflammation.

At XBiotech we are indeed excited about the future.