Genentech in Licensing Pact With Xencor

Genentech Inc. has licensed antibody technology from Xencor Inc., a small biotechnology company in Monrovia, to develop next-generation versions of Genentech’s cancer drugs Rituxan and Herceptin.

Genentech, based in South San Francisco, will pay Xencor a $5-million fee and annual licensing fees. The smaller company is eligible for undisclosed milestone payments and royalties.

Xencor is a Caltech spinoff working on drugs for rheumatoid arthritis and other diseases.