XOMA Announces Transformational License Agreements for Gevokizumab and its IL-1 Beta Intellectual Property Portfolio
August 25 2017 - 7:00AM
XOMA Corporation (Nasdaq: XOMA), a pioneer in the discovery and
development of therapeutic antibodies, today announced it has
licensed the global commercial rights to gevokizumab, a novel
anti-IL-1 beta allosteric monoclonal antibody, to Novartis. In a
separate agreement, XOMA has granted Novartis a license to its
intellectual property covering the use of IL-1 beta targeting
antibodies in the treatment of cardiovascular disease.
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.
Investor contact:
Luke Heagle
Pure Communications, Inc.
+1 910-726-1372
lheagle@purecommunications.com
Media contact:
Colin Sanford
Pure Communications, Inc.
+1 415-946-1094
csanford@purecommunications.com
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