Diversa Achieves Milestone Under XOMA Antibody Agreement

Date : 06/01/2005 @ 6:30AM
Source : PR Newswire
Stock : Xoma Ltd (MM) (XOMA)
Quote : 1.2  -0.05 (-4.00%) @ 8:00PM
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Diversa Achieves Milestone Under XOMA Antibody Agreement

Diversa Achieves Milestone Under XOMA Antibody Agreement For Generation of High-Affinity Antibody Product Candidate

SAN DIEGO and BERKELEY, Calif., June 1 /PRNewswire-FirstCall/ -- Diversa Corporation (NASDAQ:DVSA) and XOMA Ltd. (NASDAQ:XOMA) today announced the achievement of a milestone under their therapeutic antibody generation and optimization and license agreement for the successful generation of an antibody that binds with sub-picomolar affinity to an undisclosed XOMA target. The milestone achievement will result in an undisclosed payment to Diversa.

"This milestone further demonstrates Diversa's ability to generate high-quality antibody product candidates through its technologies," said Jay M. Short, Ph.D., president and chief executive officer of Diversa Corporation. "We are also pleased to report this therapeutic antibody candidate has shown an affinity that is rare and far exceeds the original design goals."

"This accomplishment highlights the ability of our two companies to work together to rapidly generate a superior antibody that has shown exceptional potency," said John L. Castello, XOMA's chairman, president and chief executive officer. "We believe this therapeutic antibody candidate has the potential to be an important addition to our pipeline and has great potential as a commercially attractive product for the treatment of autoimmune-inflammatory diseases."

Under the terms of the agreement announced in January 2004, Diversa utilizes its proprietary evolution technologies to generate and optimize therapeutic antibodies against targets identified by XOMA, and is entitled to receive undisclosed payments for the achievement of certain milestones as well as royalties on future sales.

About Diversa

Diversa Corporation is a leader in applying proprietary genomic technologies for the rapid discovery and optimization of novel protein-based products. The Company is directing its integrated portfolio of technologies to the discovery, evolution, and production of commercially valuable molecules with agricultural, chemical, industrial, and pharmaceutical applications. Diversa has established alliances and joint ventures with market leaders, such as Bayer Animal Health, Cargill Health and Food Technologies, DuPont Bio-Based Materials, GlaxoSmithKline, Medarex, Merck, and XOMA. In addition, the Company has formed a broad strategic relationship with Syngenta AG, a world-leading agribusiness company. Diversa has commercialized products both independently and in collaboration with strategic partners and licensees. Additional information is available at Diversa's website: http://www.diversa.com/.

About XOMA

XOMA develops for commercialization antibody and other protein-based biopharmaceuticals to treat cancer, immune disorders and infectious diseases.

The Company pipeline includes proprietary products along with collaborative product development programs with Chiron Corporation, Millennium Pharmaceuticals, Inc., and Aphton Corporation. The Company also has a royalty interest in RAPTIVA(R), a product marketed worldwide that was developed under a collaboration arrangement with Genentech, Inc. For more information about XOMA's product pipeline and antibody product development capabilities and technologies, please visit XOMA's website at http://www.xoma.com/.

Diversa Forward-Looking Statement

Statements in this press release that are not strictly historical are "forward-looking" and involve a high degree of risk and uncertainty. These include statements related to the ability of Diversa and XOMA to generate or optimize antibodies under their agreement, the therapeutic and commercial potential of any antibodies that are developed, and the ability for Diversa to realize future milestone and royalty payments under the agreement with XOMA, all of which are prospective. Such statements are only predictions, and the actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks involved with Diversa's new and uncertain technologies, risks associated with Diversa's dependence on patents and proprietary rights, risks associated with Diversa's protection and enforcement of its patents and proprietary rights, Diversa's dependence on XOMA in connection with its agreement with XOMA and otherwise on its existing collaborations, the ability of XOMA to commercialize products, Diversa's ability to commercialize products, risks associated with delays in obtaining regulatory approval for Diversa's products, the development or availability of competitive products or technologies, and the future ability of Diversa to enter into and/or maintain collaboration and joint venture agreements, including the strategic relationship with XOMA. Certain of these factors and others are more fully described in Diversa's filings with the Securities and Exchange Commission, including, but not limited to, Diversa's Annual Report on Form 10-K for the year ended December 31, 2004. These forward-looking statements speak only as of the date hereof. Diversa expressly disclaims any intent or obligation to update these forward-looking statements.

XOMA Forward-Looking Statement

Certain statements contained herein concerning current collaborations and product development or that otherwise relate to future periods 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. These statements are based on assumptions that may not prove accurate. 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. These risks, including those related to the results of discovery research, pre-clinical testing, the timing or results of pending and future clinical trials (including the design and progress of clinical trials; safety and efficacy of the products being tested; action, inaction or delay by the FDA, European or other regulators or their advisory bodies; and analysis or interpretation by, or submission to, these entities or others of scientific data), changes in the status of the existing collaborative relationships, the ability of collaborators and other partners to meet their obligations, market demand for products, scale up and marketing capabilities, competition, uncertainties regarding the status of biotechnology patents, uncertainties as to the cost of protecting intellectual property and risks associated with XOMA's status as a Bermuda company, are described in more detail in the Company's most recent annual report on Form 10-K and in other SEC filings. Consider such risks carefully in considering XOMA's prospects.

Diversa Contact: Martin Sabarsky Diversa Corporation Corporate Development and Investor Relations (858) 526-5166

XOMA Contacts: Deb McManus, APR Media Relations (510) 204-7200

Ellen M. Martin Investor Relations Kureczka/Martin Associates (510) 832-2044

DATASOURCE: Diversa Corporation

CONTACT: Martin Sabarsky, Corporate Development and Investor Relations

of Diversa Corporation, +1-858-526-5166; or Deb McManus, APR, Media Relations,

+1-510-204-7200, or Ellen M. Martin, Investor Relations of Kureczka/Martin

Associates, +1-510-832-2044, both for XOMA

Web site: http://www.diversa.com/

http://www.xoma.com/

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