Having secured an endorsement for its experimental psoriasis drug from a federal advisory panel Tuesday,

Xoma

(XOMA) - Get Report

said Thursday it plans to issue 9 million new shares.

The Berkeley, Calif.-based biotechnology company did not set an offering price or an offering date, but it said it hoped to raise $79 million in net proceeds for general corporate purposes, research and development, and the payment of debt related to creating the psoriasis drug Raptiva.

The company's prospectus said that high demand for this offering could result in underwriters' offering an extra 1.35 million shares.

The prospectus listed the company's share price of $9.40 on Sept. 8, the day before a Food and Drug Administration advisory committee voted 11-0 in support of Raptiva's use in treating moderate to severe psoriasis in patients age 18 and older.

The FDA doesn't have to follow the recommendation of advisory panels, but the agency usually does. The agency is expected to act by Oct. 27.

Xoma's stock was halted Sept. 9 while the advisory panel deliberated; then shares jumped as high as $10.70 early Wednesday, but they have drifted downward since then. The stock was off 4.2%, or 40 cents, at $9.08 in midafternoon trading Thursday.

Xoma said it might use the proceeds to pay off some or all $74.9 million in notes owed to

Genentech

(DNA)

, its partner in developing Raptiva. It also might use the money to retire $5.2 million in debt owed to

Millennium Pharmaceuticals

(MLNM)

for collaborating on other experimental drugs.

Xoma, which filed a shelf offering for 13 million shares in mid-August with the

Securities and Exchange Commission

, had 72 million shares outstanding as of June 30.

The lead manager for the new stock offering is UBS Securities. Co-managers are CIBC World Markets; U.S. Bancorp Piper Jaffray; Adams, Harkness & Hill; Jefferies & Co.; and ThinkEquity Partners.