XOMA Ltd. ( XOMA)

Q1 2011 Earnings Call

May 05, 2011 04:30 pm ET

Executives

Carol DeGuzman - Senior Director, IR

Steven Engle - Chairman & CEO

Fred Kurland - VP & CFO

Alan Solinger - VP of Clinical Immunology

Analysts

Christopher James - McNicoll, Lewis, & Vlak

Richard Lau - Wedbush Securities

Matt Kaplan - Ladenburg Thalmann & Co.

Ritu Baral - Canaccord Genuity

Adnan Butt - RBC Capital Markets

Presentation

Operator

Good day ladies and gentlemen. And welcome to XOMA’s First Quarter 2011 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator instructions) And as a reminder, this conference call may be recorded.

At this time I’d like to hand the conference over to Ms. Carol DeGuzman, Senior Director of Investor Relations. Ma'am you may begin.

Carol DeGuzman

Thank you operator. Good afternoon and welcome to today’s call. A short while ago, we issued a news release, which included our financial results for the quarter ended March 31, 2011, and a general business update. Our quarterly report on Form 10-Q was filed with the Securities and Exchange Commission this afternoon. Each document will be available on the XOMA website.

Today’s webcast also can be accessed via our website and will be available for replay until the close of business on July 5, 2011. Joining me on today’s call is Steven Engle, Chairman and Chief Executive Officer and Fred Kurland our Vice President and Chief Financial Officer and Dr. Alan Solinger, our Vice President of Clinical Immunology.

We wish to remind all listeners that certain statements concerning the timing of initiation of clinical trials were interim or other results of early stage trials or that otherwise relate to future periods 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.

These statements are based on assumptions that may not prove accurate. Actual results could differ materially due to risks inherent in the biotechnology industry and for companies engaged in the development of new products in a regulated market.

Among other things, the initiation of clinical trials may be delayed or may never occur as a result of actions or inaction by our collaboration partners, complications in the design implementation or approval of clinical trials or unanticipated safety issues. Results of early-stage clinical trials may not be supported by later findings. Larger trials and/or other actions required for regulatory approval may not be economically feasible, and final results may not be consistent with preclinical or interim results.

These and other risks, including the generally unstable nature of current economic and financial market conditions, the results of discovery and pre-clinical testing, the timing or results of pending and future clinical trials including action inaction or delay by the FDA, European or other regulators or their advisory bodies, and analysis or interpretation by, or submission to, these entities or others of scientific data.

Changes in the status of existing collaborative or licensing relationships, the ability of collaborators, licensees and others to meet their obligations and their discretion in decision-making.

XOMA's ability to meet the demands of the government agency with which it has government contracts; competition; market demand for products; scale-up, manufacturing and marketing capabilities; availability of additional licensing or collaboration opportunities; international operations; share price volatility; XOMA's financing needs and opportunities; uncertainties regarding the status of biotechnology patents and the cost of protecting intellectual property; and risks associated with XOMA's status as a Bermuda company, 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.

I'll now turn the call over to Steven Engle, our Chairman and CEO.

Steven Engle

Thank you, Carol. In this quarter XOMA achieved an important milestone in our strategy to become a product focused company with commercial operations in the US. Over the last three years, we’ve been moving from a service oriented business model conducting product discovery and development for pharmaceutical companies to one focused on developing and marketing our own products.

As a result of our new development and commercialization agreement with Servier for XOMA 052 which provides financial, medical and scientific support in the near-term, international commercial strength in the long term and the rights to market our anti-inflammatory drug in the US, particularly in Behcet’s uveitis we believe we have taken an important step in achieving the strategy.

XOMA is fortunate to be a leader in antibody technology and have products like XOMA 052 at a time when the use of antibodies is well accepted and growing rapidly as a primary therapeutic approach to the treatment of diseases.

The impact of novel antibody based therapies expanding dramatically bolstered by ground breaking antibody treatments such as Humira, Avastin, Synagis and Rituxan. This growth continues today with recently approved antibody treatments for lupus, osteoporosis and multiple sclerosis.

XOMA 052 has shown biologic activity and safety in patients with Behcet's uveitis, an orphan disease of the eye with major unmet medical needs and another diseases.

As a result, we believe XOMA 052 has the potential to be one of these important therapies first in Behcet's uveitis and then in other diseases. When we approached our negotiations with Servier, we had three goals in mind. First to gain a season partner to help us successfully develop and market XOMA 052 around the world. Second, to ensure the resources to achieve this, and third to retain the commercial rights to XOMA 052 in the US.

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