On January 10, 2007, Genentech DNA reported sales of both Raptiva and Lucentis above expectations. Genentech pays a royalty to Xoma on sales of both drugs. We have revised our earnings model based on the stronger-than-expected sales of Raptiva and Lucentis.
Most recently, on January 17, 2007, Xoma signed a second collaboration with development partner Schering-Plough SGP, resulting in an upfront milestone payment. Xoma has not disclosed the upfront milestone fees captured from this collaboration, just that the total deal before back-end royalties on product sales is between $25 and $75 million. Using its extensive collection of phage display libraries and optimization technologies, Xoma will discover therapeutic antibodies against one or more targets selected by Schering-Plough. Xoma may also utilize its proprietary Human Engineering technology to humanize antibody candidates generated by hybridoma techniques. During the fourth quarter of 2006, both parties continued with pre-clinical studies. We expect an announcement of the first target to be made soon. http://news.moneycentral.msn.com/ticker/article.aspx?Symbol=US:DNA&Feed=BW&Date=20070118&....
XOMA and Takeda Establish Collaboration for Therapeutic Antibody Discovery and Development Berkeley, CA and Osaka, JAPAN - November 2, 2006 - XOMA Ltd. (Nasdaq: XOMA) and Takeda Pharmaceutical Company Limited (TSE4502:Takeda) today announced that they have entered into an agreement for therapeutic monoclonal antibody discovery and development. The collaboration is intended to capitalize on XOMA's comprehensive antibody discovery, development and production technologies and expertise. The agreement calls for Takeda to make up-front and milestone payments to XOMA, fund XOMA's R&D activities including manufacturing of the antibodies for preclinical and early clinical supplies, and pay royalties to XOMA on sales of products resulting from the collaboration. Payments to XOMA could exceed $100 million before royalties over the life of the collaboration.
Using its extensive collection of phage display libraries and antibody optimizationtechnologies, XOMA will discover therapeutic antibodies against multiple targets selected by Takeda. Other XOMA activities will include preclinical studies to support regulatory filings, cell line and process development, and production of antibodies for initial clinical trials. Takeda will be responsible for clinical trials and commercialization of drugs after IND submission, and is granted the right to manufacture once the product enters into phase 2 clinical trials.
"XOMA's extensive antibody discovery and development expertise and technologies fit well with Takeda's objective of building a strategic presence and pipeline in therapeutic antibodies. We look forward to working with our new partner," said John L. Castello, chairman of the board, president, and chief executive officer of XOMA.
"We are pleased with the conclusion of the agreement with XOMA, which has state-of-the-art technology in the antibody field," said Shigenori Ohkawa, PhD, General Manager of Pharmaceutical Research Division of Takeda. "We believe that the collaboration with XOMA will accelerate our drug discovery and development activitiesin therapeutic antibodies, a field that continues to grow as an important source of new medicines."
About XOMA XOMA is a leader in the discovery, development and manufacture of therapeutic antibodies, with a therapeutic focus that includes cancer and immune diseases. XOMA has royalty interests in RAPTIVA® (efalizumab), a monoclonal antibody product marketed worldwide (by Genentech, Inc. (NYSE: DNA) and Serono, SA) to treat moderate-to-severe plaque psoriasis, and LUCENTIS™ (ranibizumab injection), a monoclonal antibody product marketed worldwide (by Genentech and Novartis AG (NYSE: NVS)) to treat neovascular (wet) age-related macular degeneration.
The company has built a premier antibody discovery and development platform that includes access to seven of the leading commercially available antibody phage display libraries and XOMA's proprietary Human Engineering™ and bacterial cellexpression (BCE) technologies. More than 45 companies have signed BCE licenses. XOMA's development collaborators include Lexicon Genetics, Inc. (Nasdaq: LEXG),Novartis, Schering-Plough Corporation (NYSE: SGP) and Takeda Pharmaceutical Company Limited (TSE4502:Takeda). With a fully integrated product development infrastructure, XOMA's product development capabilities extend from preclinical sciences to product launch. http://www.takeda.com/press/06110203.htm
Today, XOMA. (XOMA) announced that it will start cashing on Lucentis™, owned by Genentech. The drug has been recently approved by the FDA for the treatment of neovascular (wet) age-related macular degeneration. Lucentis is the first marketed therapeutic product by a licensee of XOMA's Bacterial Cell Expression (BCE) technology. The press release stated that XOMA will receive a royalty on worldwide sales of Lucentis. Another drug, Cimzia™ (certolizumab pegol, CDP870), owned by UCB (Euronext-Brussels:UCB), has been submitted to the FDA and European regulators for approval in Crohn's disease and is currently in Phase 3 clinical trials for rheumatoid arthritis.
XOMA's BCE licensing program includes production and research licenses, which to date have been signed with more than 45 pharmaceutical and biotechnology companies. XOMA has also provided its BCE technology in cross-license arrangements that have allowed XOMA to gain access to seven of the world's leading phage display libraries and other technologies critical to its antibody discovery and development programs. As a matter of policy, XOMA generally does not disclose royalty percentages, up-front or milestone payments, or other financial terms of specific licenses.
This is one example of “hidden values” of small biotech firms. Many development-stage biotechnology firms have market caps that do not at all reflect the value of their technologies and the promises of their products. Prohost subscribers are aware of these firms.
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