Xaira Therapeutics is seeking new partners to expand its data resources, Senior Vice President of Business Development and Operations Rachel Lane said in July during the BIO International Convention. The company, which recently launched its first virtual cell model querying 4.9 billion parameters, is focusing on building up preclinical models as it moves toward proof of concept.
Lane, who joined Xaira at the end of March, has been tasked with identifying potential collaborators across various sectors. "You have this complex internal dialog amongst the team about how do you ensure that you can maintain priorities, strategic priorities internally, while also being the best partner that you can?" Lane said. She emphasized that partnerships must offer strategic value and be mutually beneficial: "That raises a bar then of what type of partnership you're going to do, and making sure that there's really strategic value, and the deal can be crafted in a way that is a win-win for both sides."
While Xaira does not need financial support from partners—having raised $1.3 billion according to PitchBook—the company aims to enhance its internal data moat by acquiring more preclinical models from outside sources. "When you have to do partnerships because you need non-dilutive capital and that's your only source, those deals can look very different than when you're in a position of strength and you're really looking for that deal structure that can be a benefit for both sides," Lane said.
Lane indicated an interest in partnering with organizations able to provide disease-specific preclinical models: "That's where we see a sweet spot for partnerships, to help further build the data moat that we've built internally to train and differentiate the models." She also referenced recent large-scale licensing deals between pharmaceutical companies and technology firms as examples of opportunities Xaira might pursue.
Since its emergence in 2024 with $1 billion in funding, Xaira has kept details about its pipeline confidential but confirmed ongoing work on difficult targets and large molecule therapeutics. Immunology is one area under consideration; however, Lane described their approach as agnostic regarding therapeutic areas: "One of the thresholds for targets that we go after is obviously that there's a lot of rationale and validation of the target and clinical opportunity, but that it's not being able to be addressed by different means," she said.
Lane concluded by emphasizing Xaira's focus on advancing its pipeline: "Our priority has always got to be on advancing our pipeline because ultimately that's how we're going to be valued."
