Quarterly report pursuant to Section 13 or 15(d)

Restructuring Charges

Restructuring Charges
3 Months Ended
Mar. 31, 2016
Restructuring And Related Activities [Abstract]  
Restructuring Charges

7. Restructuring Charges


On July 22, 2015, the Company that announced the Phase 3 EYEGUARD-B study of gevokizumab in patients with Behçet’s disease uveitis, run by Servier, did not meet the primary endpoint of time to first acute ocular exacerbation. Due to the results and the Company’s belief they would be predictive of results in its other EYEGUARD studies, in August 2015, XOMA announced its intention to end the EYEGUARD global Phase 3 program.  On August 21, 2015, the Company, in connection with its efforts to lower operating expenses and preserve capital while continuing to focus on its endocrine product pipeline, implemented a restructuring plan (the “2015 Restructuring”) that included a workforce reduction resulting in the termination of 52 employees during the second half of 2015.  


During the three months ended March 31, 2016, the Company recorded charges of $2,000 related to severance, other termination benefits and outplacement services in connection with the workforce reduction resulting from the 2015 Restructuring. In addition, the Company recognized an additional restructuring charge of $34,000 in contract termination costs, which primarily include costs in connection with the discontinuation of the EYEGUARD studies.


In the first quarter of 2016, the Company paid $0.4 million associated with the restructuring activities and expects to pay the remaining $0.1 million in the second quarter of 2016.  


The outstanding restructuring liabilities are included in accrued and other liabilities on the condensed consolidated balance sheets. The components of the restructuring liabilities are shown below (in thousands):




Employee Severance











and Other Benefits



Termination Costs





Balance at December 31, 2015













Restructuring charges













Cash payments













Balance at March 31, 2016