US based X-Chem, Inc. and Otsuka Pharmaceutical Co., Ltd., a subsidiary of Otsuka Holdings Co., Ltd. headquartered in Tokyo, Japan, have signed a collaborative research agreement to advance the discovery process for new Otsuka drug compounds.

X-Chem will utilize its DNA-encoded library (DEX) screening and informatics platform to search for novel drug leads for several Otsuka discovery targets. The DNA encoding of molecules enables screening and analysis of vast chemical space, supporting Otsuka’s aim to increase success rates for the generation of target leads for new drugs and to shorten screening timelines.

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.