XOMA Reports First Quarter 2018 Financial Results
May 09 2018 - 4:05PM
XOMA Corporation (Nasdaq:XOMA), a pioneer in the discovery,
development and licensing of therapeutic antibodies, today
announced its first quarter 2018 financial results.
“Our efforts in the first quarter were dedicated to identifying,
assessing and analyzing out-license and asset acquisition
opportunities. These included potential partnering conversations
regarding our novel IL-2 antibody program, as well as discussions
with companies seeking to monetize future potential milestone and
royalty revenue streams,” stated Jim Neal, Chief Executive Officer
at XOMA. “While the number of opportunities continues to expand, we
are focused on identifying a narrower set of high quality potential
transactions. With a cash runway that spans multiple years and
additional access to capital from our credit facility, we remain
intensely focused on allowing our fully-funded programs to mature
in the hands of our partners while expanding and diversifying our
portfolio of potential future revenue streams to drive both near-
and long-term value.”
Financial Results
XOMA recorded total revenues of $0.5 million for the first
quarter of 2018, compared to $0.3 million for the first quarter of
2017.
Research and development (R&D) expenses were $0.4 million
for the first quarter of 2018, compared to $4.0 million for the
first quarter of 2017. The decrease in R&D expenses was due
primarily to reductions of $1.0 million in clinical trial costs,
$0.8 million in consulting costs, $0.6 million in the allocation of
facilities costs, $0.3 million in salaries and related expenses,
$0.3 million in stock-based compensation, and $0.3 million in
external manufacturing costs. The significant reduction in R&D
spending year-over-year is a result of the execution of the
Company’s royalty-aggregator business model that is designed to
leverage its extensive portfolio of partnered programs and licensed
technologies.
General and administrative (G&A) expenses were $5.2 million
for the three months ended March 31, 2018 and 2017, respectively.
The minimal change in G&A expenses for the three months ended
March 31, 2018 was due primarily to decreases of $0.8 million in
consulting services, $0.3 million in legal and audit fees, and $0.2
million in information technology costs, partially offset by
increases of $0.7 million in stock compensation cost and $0.6
million in the allocation of facilities costs due to a greater
proportion of general and administrative personnel after the
Company’s restructuring activities.
Net loss for the first quarter of 2018 was $3.8 million. Net
loss for the first quarter of 2017 was $16.3 million and included
non-recurring and restructuring charges totaling $7.6 million.
On March 31, 2018, XOMA had cash and cash equivalents of $42.0
million. The Company ended December 31, 2017, with cash and cash
equivalents of $43.5 million. The Company’s current cash and cash
equivalents are expected to be sufficient to fund its operations
for multiple years.
In May 2018, the Company announced a flexible $20 million credit
facility with Silicon Valley Bank. The credit facility is available
to XOMA through March 2019 and may be extended to March 2020 upon
certain conditions. The credit facility includes the opportunity to
increase the borrowing capacity to an aggregate amount of $40
million.
About XOMA Corporation
XOMA has built a portfolio of over two dozen 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 licenses to partner-funded programs.
XOMA’s license portfolio has the potential to generate significant
milestone payments and royalty revenue in the future. For more
information, visit www.xoma.com.
Forward-Looking Statements
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.
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; we
may not be successful in entering into out-license agreements for
our product candidates; if our therapeutic product candidates do
not receive regulatory approval, our third-party licensees will not
be able to manufacture and market them. 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.
Investor contact:Luke HeagleW2O
pure+1 910-726-1372lheagle@w2ogroup.com
Media contact:Julie NormartW2O
pure+1 415-946-1087jnormart@w2ogroup.com
|
XOMA CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS |
(unaudited) |
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
2018 |
|
|
|
|
2017 |
Revenues: |
|
|
|
|
|
|
Revenue
from contracts with customers |
$ |
401 |
|
|
|
|
|
$ |
150 |
|
Revenue
recognized under units-of-revenue method |
|
62 |
|
|
|
|
|
|
110 |
|
Total
revenues |
|
463 |
|
|
|
|
|
|
260 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Research
and development |
|
432 |
|
|
|
|
|
|
3,993 |
|
General
and administrative |
|
5,168 |
|
|
|
|
|
|
5,167 |
|
Restructuring |
|
— |
|
|
|
|
|
|
2,020 |
|
Total
operating expenses |
|
5,600 |
|
|
|
|
|
|
11,180 |
|
|
|
|
|
|
|
|
Loss from
operations |
|
(5,137 |
) |
|
|
|
|
|
(10,920 |
) |
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
Interest
expense |
|
(170 |
) |
|
|
|
|
|
(609 |
) |
Loss on
extinguishment of debt |
|
— |
|
|
|
|
|
|
(515 |
) |
Other
income, net |
|
1,501 |
|
|
|
|
|
|
1,329 |
|
Net loss
and comprehensive loss |
|
(3,806 |
) |
|
|
|
|
|
(10,715 |
) |
Deemed dividend on
convertible preferred stock |
|
— |
|
|
|
|
|
|
(5,603 |
) |
Net loss
and comprehensive loss available to common stockholders, basic and
diluted |
$ |
(3,806 |
) |
|
|
|
|
$ |
(16,318 |
) |
Basic and diluted net
loss per share available to common stockholders |
$ |
(0.46 |
) |
|
|
|
|
$ |
(2.37 |
) |
Weighted average shares
used in computing basic and diluted net loss per share available to
common stockholders |
|
8,313 |
|
|
|
|
|
|
6,887 |
|
|
XOMA CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(unaudited) |
(in thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
March 31, |
|
|
|
|
December 31, |
|
2018 |
|
|
|
|
2017 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
41,968 |
|
|
|
|
|
$ |
43,471 |
|
Trade and
other receivables |
|
436 |
|
|
|
|
|
|
397 |
|
Prepaid
expenses and other current assets |
|
273 |
|
|
|
|
|
|
327 |
|
Total
current assets |
|
42,677 |
|
|
|
|
|
|
44,195 |
|
Property and equipment,
net |
|
75 |
|
|
|
|
|
|
83 |
|
Other assets |
|
559 |
|
|
|
|
|
|
657 |
|
Total
assets |
$ |
43,311 |
|
|
|
|
|
$ |
44,935 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
$ |
1,420 |
|
|
|
|
|
$ |
1,679 |
|
Accrued
and other liabilities |
|
1,338 |
|
|
|
|
|
|
2,675 |
|
Income
taxes payable |
|
1,666 |
|
|
|
|
|
|
1,637 |
|
Unearned
revenue recognized under units-of-revenue method – current |
|
658 |
|
|
|
|
|
|
615 |
|
Contract
liabilities |
|
798 |
|
|
|
|
|
|
798 |
|
Accrued
interest on long-term debt – current |
|
— |
|
|
|
|
|
|
18 |
|
Total
current liabilities |
|
5,880 |
|
|
|
|
|
|
7,422 |
|
Unearned revenue
recognized under units-of-revenue method – non-current |
|
17,019 |
|
|
|
|
|
|
17,123 |
|
Long-term debt |
|
14,572 |
|
|
|
|
|
|
14,572 |
|
Other liabilities –
non-current |
|
203 |
|
|
|
|
|
|
32 |
|
Total
liabilities |
|
37,674 |
|
|
|
|
|
|
39,149 |
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Convertible preferred stock, $0.05 par value, 1,000,000 shares
authorized, 5,003shares issued and outstanding at March 31, 2018
and December 31, 2017 |
|
— |
|
|
|
|
|
|
— |
|
Common
stock, $0.0075 par value, 277,333,332 shares authorized, 8,332,118
and 8,249,158 shares issued and outstanding at March 31, 2018 and
December 31, 2017, respectively |
|
62 |
|
|
|
|
|
|
62 |
|
Additional paid-in capital |
|
1,188,440 |
|
|
|
|
|
|
1,184,783 |
|
Accumulated deficit |
|
(1,182,865 |
) |
|
|
|
|
|
(1,179,059 |
) |
Total
stockholders’ equity |
|
5,637 |
|
|
|
|
|
|
5,786 |
|
Total
liabilities and stockholders’ equity |
$ |
43,311 |
|
|
|
|
|
$ |
44,935 |
|
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