Isis Pharmaceuticals and Xenon Pharmaceuticals announced that Xenon has exercised its option to an exclusive worldwide license to XEN701, an antisense drug discovered in a collaboration between Isis and Xenon. For the license of XEN701, Isis earns a $2M payment from Xenon. XEN701 is a drug candidate designed to inhibit the production of hepcidin, a target Xenon identified utilizing its extreme genetics platform for the treatment of anemia of chronic disorders. XEN701 is currently being evaluated in studies to support clinical development. Xenon plans to initially develop XEN701 for patients with chronic kidney disease who are intolerant of or who are poor responders to erythropoietin therapy. XEN701 is the first drug to enter development from Isis' collaboration with Xenon.