XOMA Corporation (XOMA)

[damoney]

Related Quotes
Sym. Price Chg.
XOMA Trade
News 5.3 0
XOMA In Pact With French Pharma Co For Anti-Inflammatory Treatment

Jan 4, 2011 08:46:11 (ET)


DOW JONES NEWSWIRES

XOMA Ltd. (XOMA) reached a deal potentially valued at $505 million, plus royalties, with Les Laboratoires Servier, France's largest privately held pharmaceutical company, to develop and commercialize its lead drug candidate, an anti-inflammatory treatment targeted for several diseases.

Shares of XOMA recently were up 14% at $6.03 in recent premarket trading. The stock through Monday's close is down about 50% over the past 12 months.

The antibody discovery and development company in November announced "positive" results from a study of its XOMA 052 compound in treating Bechet's disease, which can prompt eye inflammation and lead to vision problems. It also is conducting trials for use in treating diabetes and cardiovascular diseases.

Under the agreement, XOMA will receive an upfront payment of about $35 million--including cash and a loan that comes due in 2016--with milestone payments of as much as $470 million and tiered royalties of up to the midteens on a percentage basis.

XOMA will keep rights for Bechet's and other inflammatory and oncology treatments in the U.S. and Japan, while Servier obtains rights outside those countries. Servier will fund the first $50 million of XOMA 052 development expenses and an additional 50% of expenses related to its Bechet's treatment, which has orphan drug status in the U.S. and European Union. The companies plan discussions this year with multiple regulators regarding further testing of its Bechet's treatment.

Servier also will fund development for diabetes and cardiovascular disease treatments in exchange for global rights. XOMA has the option to reacquire the commercialization and development rights for those products in the U.S. and Japan. If XOMA does not reacquire the rights, milestone payments could rise to as much as $800 million. XOMA expects to release data from two diabetes trials during the current quarter.



-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]

(END) Dow Jones Newswires

January 04, 2011 08:46 ET (13:46 GMT)