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XOMA Establishes Development and Manufacturing Relationship with Taligen; XOMA to utilize its Bacterial Cell Expression Technology to Manufacture Novel Anti-Inflammatory Therapeutic for Clinical Trials.

BERKELEY, Calif. -- XOMA Ltd. (Nasdaq:XOMA) today announced the completion of a letter agreement with Taligen Therapeutics, Inc. of Aurora, CO for the development and cGMP manufacture of a novel antibody fragment for the potential treatment of inflammatory diseases.

The agreement calls for XOMA to utilize its Bacterial Cell Expression technology and expertise to develop and scale-up production processes for Taligen's FAb antibody fragment. XOMA will also manufacture quantities of the antibody fragment sufficient to support preclinical and initial clinical trials. XOMA intends to commence work on the project immediately and to negotiate a longer-term definitive agreement with Taligen later this year.

"XOMA has substantial expertise in bacterial cell line development, process development, scale-up and manufacturing ideally suited to biologics, and we are pleased that Taligen can benefit from XOMA's capabilities on such an important product for Taligen," said Woodruff Emlen, M.D., President of Taligen.

"We are pleased to help Taligen develop and manufacture this antibody fragment," said Rob Tenerowicz, XOMA's vice president of operations. "Our agreement with Taligen is especially important because it demonstrates the breadth of our capabilities and expertise in bacterial fermentation processes in addition to our better-known strengths in mammalian cell culture systems. It also supports XOMA's business strategy of leveraging our cell line and process development expertise, along with our production capacity, to generate revenue."

XOMA's development and manufacturing capabilities

With more than 20 years of experience developing therapeutic proteins, especially antibodies, XOMA has built a fully integrated infrastructure that supports biologics development from recombinant DNA engineering and cell expression, through production scale up and cGMP manufacturing. XOMA can rapidly create a production process and advance antibodies into pilot scale production, then complete process scale-up and produce GMP material for use in human clinical trials, Biologics License Applications (BLA) filings, and for initial commercial launch. XOMA's process development and manufacturing capabilities include:

-- Cell line and process development

-- Optimization of production processes, including scale-up

-- Analytical assays and test methods

-- Formulation optimization

-- Pilot Plant for process development and scale-up with two 500L fermenters

-- cGMP manufacturing facility with three production trains of 2750L capacity

-- Full service Quality infrastructure (Quality Assurance, Quality Control, Quality Engineering)

-- Filling capability up to 3,000 vials (including labeling and packaging services) sufficient for clinical trials

-- Stability program, including all stability-indicating assays

For more information about XOMA's process development and manufacturing capabilities, please visit http://www.xoma.com/wt/page/cgmp

About Taligen

Taligen Therapeutics is a biotechnology company focused on the treatment of complement-mediated inflammatory diseases through modulation of complement activation.

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 a royalty interest in RAPTIVA(R) (efalizumab), a monoclonal antibody product marketed worldwide (by Genentech, Inc. and Serono, SA) to treat moderate-to-severe plaque psoriasis. XOMA's discovery and development capabilities include antibody phage display, bacterial cell expression, and Human Engineering(TM) technologies, plus a fully integrated drug development infrastructure. XOMA's development collaborators include Lexicon Genetics Incorporated and Novartis AG. The company pipeline also includes proprietary programs in preclinical and clinical development. 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/.

Certain statements contained herein concerning 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 and preclinical 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); uncertainties regarding the status of biotechnology patents; uncertainties as to the cost of protecting intellectual property; changes in the status of the existing collaborative and licensing relationships; the ability of collaborators, licensees and other third parties to meet their obligations; market demand for products; scale up and marketing capabilities; competition; international operations; share price volatility; XOMA's financing needs and opportunities and risks associated with XOMA's status as a Bermuda company, are described in more detail in XOMA's most recent annual report on Form 10-K and in other SEC filings. Consider such risks carefully in considering XOMA's prospects.
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Publication:Business Wire
Date:May 17, 2006
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