Xoma dermatology, inflammation news
Xoma said it will restructure and reduce headcount by 84 (34%) to about 160 to save cash and focus on gevokizumab ( XOMA 052). The company will cut 50 positions immediately and the remainder by the end of the quarter. The reductions result from Xoma's decision to use a contract manufacturing organization (CMO) for Phase III testing and commercial production of gevokizumab. The humanized IgG2 mAb against IL-1 beta is in Phase II testing for inflammatory lesions seen in moderate to severe acne vulgaris and is expected to start Phase III testing in 2Q12 for non-infectious uveitis. Xoma said the restructuring will reduce 2012 G&A by about 20% and net internal spending by about $14 million in 2012. Xoma reported G&A and net cash used in operating activities of $18.8 million and $21 million, respectively, for the first nine months of 2011. The company said it will retain its pilot facility and resources to manufacture Phase I and Phase II supplies and conduct early- and mid-stage clinical trials. Xoma will not renew the lease on its 31,000 square foot manufacturing facility when it expires next year. At Sept. 30, 2011, Xoma had $45.7 million in cash and a nine-month operating loss of $21.9 million. ...