Friday, August 25, 2017 12:52:03 PM
Under these agreements, XOMA will receive $31 million in upfront payments, including a $5 million equity investment, and is eligible to receive significant pre- and post-commercialization milestone payments plus tiered high-single to mid-double-digit royalties on net sales of gevokizumab. XOMA is also eligible to receive low-single-digit royalties on canakinumab sales in cardiovascular indications rising to mid-single-digit royalties under certain circumstances. Novartis has agreed to settle XOMA’s €12 million debt to Les Laboratoires Servier and extend the maturity date on XOMA’s debt to Novartis from September 2020 to September 2022.
“Today, we achieved a significant milestone in the transformational change that we initiated in March of this year. The immediate impact of these licensing agreements for gevokizumab and our IL-1 beta intellectual property eliminates almost half of XOMA’s outstanding debt, more than doubles our cash position, and generates potential recurring revenues through royalties. It also validates both the value of XOMA’s scientific advances and our business strategy to build shareholder value by licensing our portfolio of assets and intellectual property to partners who will continue the asset’s clinical development,” stated Jim Neal, Chief Executive Officer of XOMA.
About gevokizumab
Gevokizumab is a potent monoclonal antibody with unique allosteric modulating properties. It has the potential to treat patients with a wide variety of inflammatory and other diseases. Gevokizumab binds strongly to interleukin-1 beta (IL-1 beta), a pro-inflammatory cytokine, and modulates the cellular signaling events that produce inflammation. IL-1 beta has been shown to be involved in a diverse array of disease states, including cardiometabolic diseases and other auto-inflammatory diseases.
About XOMA Corporation
XOMA has an extensive portfolio of products, programs, and technologies that are the subject of licenses the Company has in place with other biotech and pharmaceutical companies. Many of these licenses are the result of the Company's pioneering efforts in the discovery and development of antibody therapeutics. There are more than 20 such programs that are fully funded by partners and could produce milestone payments and royalty payments in the future. For more information, visit www.xoma.com.
Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding: potential receipt of pre- and post-commercialization milestone payments plus royalties on net sales of gevokizumab, as well as royalties on potential future sales of canakinumab in cardiovascular indications; the timing of the closing of the equity investment and loan repayment to Servier; the potential of XOMA's portfolio of partnered programs and licensed technologies generating substantial milestone and royalty proceeds over time; and success of XOMA’s strategy. These statements are based on assumptions that may not prove accurate, and actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry and for companies engaged in the development of new products in a regulated market. Potential risks to XOMA meeting these expectations, including the risk that XOMA may not receive any milestone, royalty or other payments from Novartis, and XOMA's dependence on Novartis to successfully develop and commercialize gevokizumab and canakinumab, and other risks are described in more detail in XOMA's most recent filing on Form 10-K and in other SEC filings. Consider such risks carefully when considering XOMA's prospects. Any forward-looking statement in this press release represents XOMA's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA disclaims any obligation to update any forward-looking statement, except as required by applicable law.
Recent XOMA News
- XOMA Reports First Quarter 2024 Financial Results and Highlights Recent Activities • GlobeNewswire Inc. • 05/09/2024 11:30:00 AM
- XOMA Adds Economic Interests in Three First-in-Category Assets to its Royalty and Milestone Portfolio Including XACIATO™ (clindamycin phosphate) Vaginal Gel 2% • GlobeNewswire Inc. • 04/30/2024 11:30:00 AM
- XOMA Earns $9 Million Milestone as FDA Grants Accelerated Approval to Day One’s OJEMDATM (tovorafenib) for Relapsed or Refractory BRAF-altered Pediatric Low-Grade Glioma (pLGG) • GlobeNewswire Inc. • 04/25/2024 11:30:00 AM
- Actym Therapeutics Appoints Thomas Smart as CEO • PR Newswire (US) • 04/24/2024 01:00:00 PM
- XOMA Corporation Announces Closing of Tender Offer • GlobeNewswire Inc. • 04/03/2024 01:00:00 PM
- XOMA Declares Quarterly Preferred Stock Dividends • GlobeNewswire Inc. • 03/21/2024 11:30:00 AM
- XOMA Announces Calculation of Additional Price Per Share and Extension of Expiration Date for Tender Offer for Kinnate Biopharma Inc. • GlobeNewswire Inc. • 03/19/2024 08:05:00 PM
- XOMA Reports Fourth Quarter and Full Year 2023 Financial Results and Highlights Recent and Upcoming Events Expected to Drive Shareholder Value • GlobeNewswire Inc. • 03/08/2024 12:30:00 PM
- XOMA to Present at Upcoming Investor Conferences in March • GlobeNewswire Inc. • 02/28/2024 12:30:00 PM
- XOMA Enters into Agreement to Acquire Kinnate Biopharma for Between $2.3352 and $2.5879 in Cash Per Share Plus a Contingent Value Right • GlobeNewswire Inc. • 02/16/2024 01:00:00 PM
- XOMA Expands its Commercial Royalty and Milestone Portfolio with DSUVIA® Acquisition • GlobeNewswire Inc. • 01/18/2024 01:30:00 PM
- Xoma to Make $1 Million Milestone Payment to LadRx After FDA Accepts Zevra Application for Arimoclomol • Dow Jones News • 01/11/2024 09:50:00 PM
- FDA Acceptance of Zevra’s Arimoclomol NDA Filing for Niemann-Pick Disease Type C (NPC) Results in XOMA Making a $1 Million Milestone Payment to LadRx • GlobeNewswire Inc. • 01/11/2024 09:05:00 PM
- XOMA Names Owen Hughes as Chief Executive Officer and Appoints Jack L. Wyszomierski as Chairman of the Board of Directors • GlobeNewswire Inc. • 01/08/2024 12:30:00 PM
- XOMA Announces Stock Repurchase Program of up to $50 Million • GlobeNewswire Inc. • 01/02/2024 12:30:00 PM
- XOMA Declares Quarterly Preferred Stock Dividends • GlobeNewswire Inc. • 12/20/2023 12:30:00 PM
- XOMA Raises up to $140 Million in Non-Dilutive, Non-Recourse Financing from Funds Managed by Blue Owl Capital Backed by VABYSMO® Royalties • GlobeNewswire Inc. • 12/19/2023 12:30:00 PM
- XOMA Reports Third Quarter 2023 Financial Results and Highlights Upcoming Events Expected to Drive Shareholder Value • GlobeNewswire Inc. • 11/07/2023 12:30:00 PM
- XOMA Earns $5 Million Milestone Upon FDA Acceptance of Day One’s Tovorafenib NDA for Relapsed or Progressive Pediatric Low-Grade Glioma (pLGG) • GlobeNewswire Inc. • 10/31/2023 11:30:00 AM
- XOMA Declares Quarterly Preferred Stock Dividends • GlobeNewswire Inc. • 09/25/2023 11:30:00 AM
- XOMA to Present at H.C. Wainwright 25th Annual Global Investment Conference • GlobeNewswire Inc. • 09/06/2023 11:30:00 AM
- XOMA Reports Second Quarter 2023 Financial Results and Provides Update on its Royalty Monetization Strategy • GlobeNewswire Inc. • 08/08/2023 11:30:00 AM
- XOMA Added to the Russell 2000® and Russell 3000® Indexes • GlobeNewswire Inc. • 06/23/2023 10:14:30 PM
- XOMA Acquires Royalty and Milestone Economics to Phase 3 First-In-Class Orphan Disease Asset for Niemann-Pick Disease Type C (NPC) and Phase 2 Oncology Asset • GlobeNewswire Inc. • 06/22/2023 11:30:00 AM
- XOMA Declares Quarterly Preferred Stock Dividends • GlobeNewswire Inc. • 06/20/2023 11:30:00 AM
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