XOMA Reports Third Quarter 2018 Financial Results
07 November 2018 - 01:00PM
XOMA Corporation (Nasdaq: XOMA), a biotechnology royalty
aggregator, today announced its third quarter 2018 financial
results.
“The third quarter of 2018 was exciting for XOMA, as we
completed our first royalty and milestone acquisition under our
royalty aggregator business model. The transaction increased
our portfolio of fully funded assets to 45 and met each
characteristic we established for the assets we intend to
acquire: (a) therapeutic at pre-commercial stage, (b) long
duration of potential royalty term, (c) being advanced by a strong
partner. We continue to assess royalty monetization
opportunities that could add fully funded assets to our portfolio,”
said Jim Neal, Chief Executive Officer at XOMA. “We have a
large and diverse set of potential milestone and royalty bearing
assets in our portfolio, and this means our success is not
dependent upon any single asset. We believe our risk is
mitigated further with each asset we add to our portfolio.”
Financial ResultsXOMA recorded total revenues
of $0.9 million for the third quarter of 2018 compared with $36.2
million in the third quarter of 2017. The decrease was due to
license and collaborative fee revenue recognized in connection with
the license agreements XOMA executed with Novartis in August
2017.
Research and development (R&D) expenses were $0.6 million
for the third quarter of 2018, compared to $0.3 million for the
third quarter of 2017. The increase in R&D expenses
during the third quarter of 2018 was due to a one-time adjustment
for external manufacturing costs in the third quarter of 2017 of
$0.7 million to reverse the cost of a batch of drug material that
did not meet quality standards. This difference was partially
offset by decreases in outside consulting fees and the allocation
of facilities charges in response to the change in our business
model.
General and administrative (G&A) expenses were $4.7 million
for the third quarter of 2018, compared to $7.3 million for the
third quarter of 2017. The decrease of $2.6 million for the
three months ended September 30, 2018, as compared to the same
period of 2017, was due primarily to decreases of $1.1 million in
consulting services, $1.2 million in stock-based compensation, and
$0.1 million in legal and accounting fees.
In the third quarter of 2018, XOMA recorded a lease-related
restructuring charge of $0.9 million as the Company completely
vacated the facilities in Berkeley, California previously used for
lab space and headquarters.
Total other income, net was $0.9 million for the third quarter
of 2018, compared to other expense of $0.3 million for the third
quarter of 2017. During the third quarter of 2018, XOMA
recorded $0.5 million in income from Ology Bioservices related to
the disposition of its biodefense business in March 2016 and $0.5
million in sublease income. Separately, the Company received
long-term marketable securities that consisted of an investment in
Rezolute Inc.’s common stock under the terms of a licensing
agreement. As of September 30, 2018, the fair value of the
long-term marketable securities had decreased resulting in the
recognition of a $0.2 million loss.
Net loss for the third quarter of 2018 was $4.6 million,
compared to net income of $26.3 million for the third quarter of
2017.
On September 30, 2018, XOMA had cash and cash equivalents of
$28.4 million. The Company ended December 31, 2017, with cash
and cash equivalents of $43.5 million. During the third
quarter of 2018, XOMA acquired a royalty interest position on seven
assets being developed by Merck and Incyte. The $15 million
Royalty Purchase Agreement with Agenus, Inc., was funded with $7.5
million from XOMA’s cash and cash equivalents and $7.5 million
through a drawdown of XOMA’s line of credit from Silicon Valley
Bank. The Company’s current cash and cash equivalents are
expected to be sufficient to fund its operations into 2021.
About XOMA CorporationXOMA 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 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 StatementsCertain 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:Juliane
SnowdenOratorium Group, LLC+1
646-438-9754jsnowden@oratoriumgroup.com
Media contact:Kathy VincentKV
Consulting & Management+1
310-403-8951kathy@kathyvincent.com
|
|
XOMA
CORPORATION |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(unaudited) |
|
(in thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
$ |
28,433 |
|
|
$ |
43,471 |
|
|
Trade and other receivables, net |
|
|
|
|
|
|
|
|
|
|
1,315 |
|
|
|
397 |
|
|
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
|
|
423 |
|
|
|
327 |
|
|
Total current assets |
|
|
|
|
|
|
|
|
|
|
30,171 |
|
|
|
44,195 |
|
|
Property and equipment, net |
|
|
|
|
|
|
|
|
|
|
66 |
|
|
|
83 |
|
|
Long-term royalty receivables |
|
|
|
|
|
|
|
|
|
|
15,000 |
|
|
|
— |
|
|
Long-term equity securities |
|
|
|
|
|
|
|
|
|
|
347 |
|
|
|
— |
|
|
Other assets |
|
|
|
|
|
|
|
|
|
|
578 |
|
|
|
657 |
|
|
Total assets |
|
|
|
|
|
|
|
|
|
$ |
46,162 |
|
|
$ |
44,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
|
|
|
|
|
$ |
1,542 |
|
|
$ |
1,679 |
|
|
Accrued and other liabilities |
|
|
|
|
|
|
|
|
|
|
2,159 |
|
|
|
2,693 |
|
|
Income taxes payable |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
1,637 |
|
|
Unearned revenue recognized under units-of-revenue
method |
|
|
|
|
|
|
|
|
|
|
1,120 |
|
|
|
615 |
|
|
Contract liabilities |
|
|
|
|
|
|
|
|
|
|
798 |
|
|
|
798 |
|
|
Total current liabilities |
|
|
|
|
|
|
|
|
|
|
5,619 |
|
|
|
7,422 |
|
|
Unearned revenue recognized under units-of-revenue method –
long-term |
|
|
|
|
|
|
|
|
|
|
16,522 |
|
|
|
17,123 |
|
|
Long-term debt |
|
|
|
|
|
|
|
|
|
|
22,034 |
|
|
|
14,572 |
|
|
Other liabilities – long-term |
|
|
|
|
|
|
|
|
|
|
834 |
|
|
|
32 |
|
|
Total liabilities |
|
|
|
|
|
|
|
|
|
|
45,009 |
|
|
|
39,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock, $0.05 par value,
1,000,000 shares authorized, 5,003 shares issued and
outstanding at September 30, 2018 and December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
Common stock, $0.0075 par value, 277,333,332 shares
authorized, 8,387,163 and 8,249,158 shares issued and
outstanding at September 30, 2018 and December 31, 2017,
respectively |
|
|
|
|
|
|
|
|
|
|
63 |
|
|
|
62 |
|
|
Additional paid-in capital |
|
|
|
|
|
|
|
|
|
|
1,190,480 |
|
|
|
1,184,783 |
|
|
Accumulated deficit |
|
|
|
|
|
|
|
|
|
|
(1,189,390 |
) |
|
|
(1,179,059 |
) |
|
Total stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
1,153 |
|
|
|
5,786 |
|
|
Total liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
$ |
46,162 |
|
|
$ |
44,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XOMA
CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|
(unaudited) |
|
(in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
Revenue from contracts with customers |
$ |
775 |
|
|
$ |
36,073 |
|
|
$ |
3,518 |
|
|
$ |
47,005 |
|
|
Revenue recognized under units-of-revenue
method |
|
121 |
|
|
|
110 |
|
|
|
96 |
|
|
|
328 |
|
|
Total revenues |
|
896 |
|
|
|
36,183 |
|
|
|
3,614 |
|
|
|
47,333 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
637 |
|
|
|
307 |
|
|
|
1,445 |
|
|
|
7,215 |
|
|
General and administrative |
|
4,657 |
|
|
|
7,255 |
|
|
|
14,236 |
|
|
|
17,625 |
|
|
Restructuring charges (credit) |
|
909 |
|
|
|
(29 |
) |
|
|
1,368 |
|
|
|
3,451 |
|
|
Total operating expenses |
|
6,203 |
|
|
|
7,533 |
|
|
|
17,049 |
|
|
|
28,291 |
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
(5,307 |
) |
|
|
28,650 |
|
|
|
(13,435 |
) |
|
|
19,042 |
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
(209 |
) |
|
|
(202 |
) |
|
|
(557 |
) |
|
|
(1,108 |
) |
|
Loss on extinguishment of debt |
|
— |
|
|
|
(135 |
) |
|
|
— |
|
|
|
(650 |
) |
|
Other income (expense), net |
|
938 |
|
|
|
(263 |
) |
|
|
3,661 |
|
|
|
337 |
|
|
(Loss) income before income tax |
|
(4,578 |
) |
|
|
28,050 |
|
|
|
(10,331 |
) |
|
|
17,621 |
|
|
Provision for income taxes |
|
— |
|
|
|
(1,706 |
) |
|
|
— |
|
|
|
(1,706 |
) |
|
Net (loss) income and comprehensive (loss)
income |
$ |
(4,578 |
) |
|
$ |
26,344 |
|
|
$ |
(10,331 |
) |
|
$ |
15,915 |
|
|
Net (loss) income and comprehensive (loss) income available to
common stockholders, basic |
$ |
(4,578 |
) |
|
$ |
16,038 |
|
|
$ |
(10,331 |
) |
|
$ |
6,609 |
|
|
Net (loss) income and comprehensive (loss) income available to
common stockholders, diluted |
$ |
(4,578 |
) |
|
$ |
16,418 |
|
|
$ |
(10,331 |
) |
|
$ |
6,669 |
|
|
Basic net (loss) income per share available to common
stockholders |
$ |
(0.55 |
) |
|
$ |
2.06 |
|
|
$ |
(1.24 |
) |
|
$ |
0.89 |
|
|
Diluted net (loss) income per share available to common
stockholders |
$ |
(0.55 |
) |
|
$ |
1.98 |
|
|
$ |
(1.24 |
) |
|
$ |
0.88 |
|
|
Weighted average shares used in computing basic net (loss)
income per share available to common stockholders |
|
8,386 |
|
|
|
7,786 |
|
|
|
8,354 |
|
|
|
7,424 |
|
|
Weighted average shares used in computing diluted net (loss)
income per share available to common stockholders |
|
8,386 |
|
|
|
8,275 |
|
|
|
8,354 |
|
|
|
7,617 |
|
|
|
|
|
|
|
|
|
|
|
XOMA (NASDAQ:XOMA)
Historical Stock Chart
Von Feb 2024 bis Mär 2024
XOMA (NASDAQ:XOMA)
Historical Stock Chart
Von Mär 2023 bis Mär 2024