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XOMA ANNOUNCES FINANCING

 BERKELEY, Calif., Nov. 22 /PRNewswire/ -- XOMA Corp. (NASDAQ-NMS: XOMA) today announced that two investment groups have signed an agreement to invest approximately $20 million in the company through a private placement of senior convertible preferred stock and warrants to purchase common stock. The aggregate potential equity investment could be as much as $35 million if the warrants are exercised for cash, but in no event will the equity ownership of the investment groups reach 20 percent of the company's voting capital stock. The numbers of shares and warrants to be acquired will be determined based on a market price formula. Funds reflecting the commitment of the investment groups have been placed in escrow, pending pricing. The transaction is scheduled to close by year-end.
 "This private placement is part of a plan to add to XOMA's financial resources and enhance the company's position to pursue its long-term objectives," said XOMA chairman and chief executive officer John L. Castello. Upon closing of the private placement, XOMA's cash (and equivalents) will increase by 25 percent to approximately $80 million. "Through product-based corporate partnerships, potential additional revenue sources and continued careful use of the resources available to the company, we are building a foundation of financial strength for the development of XOMA's products."
 XOMA's principal product development programs include:
 -- rBPI-23, a recombinant DNA-derived fragment of natural human bactericidal/permeability increasing protein (BPI). Phase I human testing of rBPI-23 has been conducted, and the product is being evaluated for use in the treatment of a range of conditions related to gram-negative bacterial infections including sepsis;
 -- E5(R), an anti-endotoxin monoclonal antibody for the treatment of gram-negative sepsis. A new phase III multicenter, randomized, double- blind, placebo-controlled trial of E5 in patients with documented gram- negative infections and severe sepsis is currently in progress under the direction of Pfizer Inc., XOMA's E5 development and marketing partner;
 -- CD5 Plus, an immunoconjugate for the treatment of graft-versus- host disease (GvHD) in bone marrow transplant patients. XOMA is currently enrolling patients in a randomized, placebo-controlled Phase III trial of CD5 Plus as initial therapy of GvHD. Ortho Biotech Inc., a division of Johnson & Johnson, is XOMA's CD5 Plus marketing partner; and
 -- T lymphocyte immunofusion proteins (TIF), genetically engineered constructs designed to specifically eliminate T lymphocytes involved in autoimmune diseases.
 XOMA is a biotechnology company engaged in the development of pharmaceutical products based on recombinant DNA and other technologies for the targeted treatment of infectious and immune system diseases and other serious disorders.
 -0- 11/22/93
 /CONTACT: Carol D. DeGuzman of XOMA, 510-644-1170/
 (XOMA)


CO: XOMA Corp. ST: California IN: MTC SU:

TM-RB -- SF002 -- 6683 11/22/93 08:58 EST
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Publication:PR Newswire
Date:Nov 22, 1993
Words:442
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