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XOMA
Licenses Antibody Technology to Pfizer
Initial
Payment to XOMA of $30 Million
Berkeley,
CA – August 28, 2007 – XOMA Ltd. (Nasdaq: XOMA) today announced that it has
licensed to Pfizer Inc, the
world's largest research-based biomedical and pharmaceutical company,
non-exclusive, worldwide rights to XOMA’s patented bacterial cell expression
(BCE) technology for phage display and other research, development and
manufacturing of antibody products.
Under
the
terms of the agreement, XOMA will receive an upfront, non-dilutive cash payment
of $30 million and milestone, royalty and other fees on future sales of all
products subject to this license, including products currently in late-stage
clinical development.
Steven
Engle, Chief Executive Officer and President of XOMA, said, “This agreement
provides clear validation of XOMA’s antibody research and affirms XOMA’s ability
to capitalize on the value of our patented technologies. We continue
to execute our strategy of using our technologies to generate high-margin
revenue in support of our programs, including our proprietary product
pipeline. We are very pleased that Pfizer has chosen to incorporate
our BCE technology into their global drug development effort, and we look
forward to what we anticipate will be a mutually beneficial
relationship.”
“BCE
is
an enabling technology for antibody phage display discovery and for the
manufacture of bacterially expressed therapeutic antibody products,” Mr. Engle
continued. “It is a proven technology for commercially significant
therapeutic antibodies as demonstrated by the approval of LUCENTIS® for wet
age-related macular degeneration. With more than 45 license agreements in
place, BCE continues to be a seminal enabling technology in antibody discovery
and production.”
XOMA
has
licensed its BCE technology to many major pharmaceutical and biotechnology
companies, including Merck & Co., Inc., Centocor, Inc. and Alexion
Pharmaceuticals, Inc. for use in the development and manufacturing of marketed
and investigational therapeutic antibody products. Under a license
agreement with Genentech, Inc., XOMA currently receives royalties for their
marketed therapeutic antibody product, LUCENTIS® which has been approved for the
treatment of wet age-related macular degeneration since
2006. LUCENTIS® (ranibizumab) is an antibody fragment to Vascular
Endothelial Growth Factor (VEGF). BCE technology is also employed for
the production of CIMZIA (certolizumab, CDP-870), UCB S.A.’s anti-TNF (tumor
necrosis factor) alpha antibody fragment, which has been submitted for
regulatory approval for Crohn’s disease. CIMZIA has had positive results in two
Phase III trials in rheumatoid arthritis and in one mid-stage clinical trial
in
psoriasis.
XOMA
plans to update 2007 revenue guidance to reflect the new agreement when it
announces third quarter 2007 results.
Bacterial
Cell Expression Technology
Bacterial
cell expression technology (BCE) is an enabling technology used to discover
and
screen, as well as develop and manufacture, recombinant antibodies for
commercial purposes. BCE is also a key technology used in multiple systems
for
high-throughput screening of antibody domains. Expression of antibodies by
phage
display technology, for example, depends on the expression and secretion
of
antibody domains from bacteria as properly folded, functional
proteins.
XOMA
scientists were the first to demonstrate the secretion of antibody domains
directly from the bacterial cells as fully functional, properly folded
molecules. XOMA has received ten U.S. patents to date relating to aspects
of its
BCE system, including six patents that broadly cover the secretion of
immunoglobulins from bacteria, including antibody fragments such as Fab and
single-chain antibodies. Corresponding foreign patents have also been granted.
XOMA’s intellectual property estate is applicable to the practice of antibody
phage display and other antibody screening applications.
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 royalty interests in RAPTIVA® (efalizumab), a
monoclonal antibody product marketed worldwide (by Genentech, Inc. and Merck
Serono S.A.) to treat moderate-to-severe plaque psoriasis, and LUCENTIS®
(ranibizumab injection), a monoclonal antibody product marketed worldwide
(by
Genentech and Novartis AG) to treat neovascular (wet) age-related macular
degeneration.
The
company has built a premier antibody discovery and development platform that
includes access to seven of the leading commercially available antibody phage
display libraries and XOMA's proprietary Human Engineering™ and bacterial cell
expression technologies. More than 45 companies have signed BCE licenses.
XOMA's
development collaborators include Lexicon Pharmaceuticals, Inc., Novartis,
Schering-Plough Research Institute and Takeda Pharmaceutical Company Limited.
With a fully integrated product development infrastructure, XOMA's product
development capabilities extend from preclinical sciences to product launch.
For
more information, please visit the company's website at
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.
###
Contact:
Greg
Mann
Investor
Relations and Corporate Communications
510.204.7270
investorrelations@xoma.com