XOMA Earns First Milestone Payment from 2018 Royalty Purchase Agreement
November 11 2020 - 7:30AM
XOMA Corporation (Nasdaq: XOMA) (“XOMA” or the “Company”) today
announced it has earned a $1 million milestone payment from Agenus
Inc. (NASDAQ: AGEN) related to Merck’s advancement of MK-4830 into
a Phase 2 study in patients with advanced non-small cell lung
cancer (NSCLC) previously treated with anti-programmed cell death
receptor ligand 1 (PD-L1) therapy. MK-4830 is part of XOMA’s
first transaction under its royalty and milestone aggregator
business model in which the Company acquired a royalty interest in
seven milestone and royalty-bearing licenses Agenus held with Merck
and Incyte for $15 million.
“Today’s announcement marks the first asset that the XOMA team
acquired under our royalty and milestone aggregator business model
to achieve a clinical milestone. We congratulate Merck on its
early clinical success with MK-4830, and we hope this positive
development ultimately translates into a new therapeutic option for
patients with non-small cell lung cancer,” stated Jim Neal, Chief
Executive Officer at XOMA.
About XOMA Corporation XOMA has built a
significant portfolio of products that are licensed to and being
developed by other biotech and pharmaceutical companies. The
Company’s portfolio of partner-funded programs spans multiple
stages of the drug development process and across various
therapeutic areas. Many of these licenses are the result of
XOMA’s pioneering efforts in the discovery and development of
antibody therapeutics. The Company’s royalty-aggregator
business model includes acquiring additional milestone and royalty
rights associated with drug development programs with third-party
funding. For more information, visit www.xoma.com.
Safe Harbor Statement 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, creating additional value for the
stockholders, cash sufficiency forecast, economic outlook, and
potential impact of the COVID-19 pandemic. 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, including
those related to the fact that our product candidates subject to
out-license agreements are still being developed, and our licensees
may require substantial funds to continue development which may not
be available; we do not know whether there will be, or will
continue to be, a viable market for the products in which we have
an ownership or royalty interest; if the therapeutic product
candidates to which we have a royalty interest do not receive
regulatory approval, our third-party licensees will not be able to
market them, and the impact to the global economy as a result of
the COVID-19 pandemic. Other 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.
EXPLANATORY NOTE: Any references to “portfolio” in this press
release refer strictly to milestone and/or royalty rights
associated with a basket of drug products in development. Any
references to “assets” in this press release refer strictly to
milestone and/or royalty rights associated with individual drug
products in development. References to royalties or royalty
rates strictly refer to future potential payment streams regardless
of whether or not they are technically defined as royalties in the
underlying contractual agreement; further, any rates referenced
herein are subject to potential future contractual adjustments.
As of the date of this press release, all assets in XOMA’s
milestone and royalty portfolio are investigational
compounds. Efficacy and safety have not been
established. There is no guarantee that any of these assets
will become commercially available.
Investor contact: Juliane Snowden Oratorium
Group, LLC +1 646-438-9754 jsnowden@oratoriumgroup.com
Media contact: Kathy Vincent KV
Consulting & Management +1 310-403-8951
kathy@kathyvincent.com
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