XOMA Earns $3 Million Milestone Payment from its License Agreement with Nanotherapeutics
September 11 2017 - 7:00AM
XOMA Corporation (Nasdaq:XOMA), a pioneer in the discovery,
development and licensing of therapeutic antibodies, today
announced it has earned a $3 million milestone payment related to
the clinical advancement of an anti-botulism product candidate the
Company licensed to Nanotherapeutics, Inc. in 2015. The product
candidate was originally discovered and engineered with XOMA’s
antibody platform and expertise. Nanotherapeutics now is developing
the product, which is intended to protect against the harmful and
even deadly effects of botulinum neurotoxins that could be deployed
by bioterrorists or other enemies.
Beyond representing both a near- and long-term cash generating
event, the milestone more importantly indicates that the product is
advancing towards later-stage development. If the product candidate
advances from its current stage of development to production and
stockpiling by governmental agencies, XOMA is eligible to receive a
15% royalty on net sales.
“We are rapidly advancing our corporate strategy to drive
shareholder value by combining revenues from our portfolio of
partner-funded programs with a lean cost structure,” stated Jim
Neal, Chief Executive Officer of XOMA. “This milestone event
reinforces the strength of our business model. The wide-range of
XOMA assets under development by our partnerships has the potential
to generate near- and long-term financial
benefits.”
In September 2017, the Company received an initial cash payment
of $250,000 related to the milestone. The remaining amounts of the
milestone payment will be received in monthly payments over the
next eleven months.
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 the potential of XOMA’s
portfolio of partnered programs and licensed technologies
generating substantial milestone and royalty proceeds over time.
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 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 HeaglePure
Communications+1 910-726-1372lheagle@purecommunications.com
Media contact:Julie NormartPure
Communications+1 415-946-1087jnormart@purecommunications.com
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