(Source: Datamonitor)
Xoma, a US-based developer and manufacturer of therapeutic antibodies, has announced the sale of 18 million of its common shares to Azimuth Opportunity for gross proceeds of $13.9 million, or approximately $0.77 per share, under its existing committed equity financing facility with Azimuth.
The company intends to use the net proceeds from this sale to continue development of its Xoma 052 product candidate, for other general corporate purposes and for working capital.
Based on its cash reserves including the proceeds from this offering, anticipated revenues from collaborations including a Xoma 052 corporate partnership, licensing transactions and biodefense contracts, Xoma believes it has sufficient cash resources to meet its anticipated net cash needs into 2011.
Steven Engle, Xoma's chairman and CEO, said: "We are pleased to have significantly strengthened our financial position through this offering and the elimination of substantial debt, as announced last week.
"In addition, we recently entered into a $6 million technology collaboration with a subsidiary of Cephalon and expanded our biodefense business with a new contract for development of an antibody to influenza viruses including the H1N1 and H5N1 strains. These developments strengthen our financial position as we pursue additional collaborations including a Xoma 052 corporate partnership and other antibody technology collaborations."
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