Xoma announced a deal with Les Laboratoires Servier (LLS) for its promising anti-inflammatory drug 052. The deals pays Xoma $15 M upfront, plus a loan for $20 M and provides for future milestone payments from LLS that could reach as much as $470 M.
LLS will also fund $50 M of Xoma 052 development costs as the drug prepares to enter phase III trials this year to address Behcet's uveitis, an orphan indication. LLS will also advance indications for diabetes and cardiovasclar disease in exchange for worldwide rights. Xoma needed the cash infusion and the reduction in burn rate for 2011-2012 that LLS will now relieve. In 2009, Xoma was forced to reduce half its workforce.
Posted by Bruce Lehr Jan 5th 2011.