XOMA Limited ( XOMA)

Q3 2011 Earnings Call

November 9, 2011 4:30 pm ET


Carol DeGuzman – Senior Director, Investor Relations

John Varian – Interim Chief Executive Officer

Fred Kurland – Vice President, Finance and Chief Financial Officer

Paul Rubin – Vice President, Clinical Development and Chief Medical Officer


Christopher James – MLV & Company

Matthew Kaplan – Ladenburg Thalmann & Co.

Richard Lau – Wedbush Morgan Securities

Jason Kantor – RBC Capital Markets



Good day, ladies and gentlemen, and welcome to the XOMA’s Quarterly Conference Call. At this time, all lines are in a listen-only mode. Later, we will conduct question-and-answer session and instructions will be given at those times. (Operator instructions) As a reminder, today’s conference call is being recorded.

I would now like to turn the conference over to your host today Carol DeGuzman, Senior Director, Investor Relations. Please begin.

Carol DeGuzman

Thank you, operator, and good afternoon everyone. A short while ago, we issued two news releases, one regarding our financial results for the third quarter of 2011, and one regarding our expanded plans for the development of gevokizumab, which is the official name for XOMA 052 as designated by the U.S. Adopted Names Council.

Today’s webcast includes a slide presentation, which you are invited to view along with the audio. You can access the slide now at the Investor’s tab of our website www.xoma.com. The audio replay and slides also will be available on the website through approximately February 9, 2012. In addition, our quarterly report, Form 10-Q has been filed with the Securities and Exchange Commission this afternoon, and also will be available on our website.

Joining me on today’s call is John Varian, our Interim Chief Executive Officer; Fred Kurland, our Vice President and Chief Financial Officer; and Dr. Paul Rubin, our Vice President, Clinical Development and Chief Medical Officer.

As we begin today’s call we wish to remind you that certain statements contained herein and that will be made orally today concerning regulatory consideration of proposed clinical trial and filing plans, anticipated size of clinical trials, anticipated timing of initiation of clinical trials and expected availability of clinical trial results, 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 from those anticipated due to certain risks inherent in the biotechnology industry, and for companies engaged in the development of new products in a regulated market.

Among other things, regulators may reject clinical trial and filing plans or find them inadequate at anytime based on medical scientific safety or other reasons. Clinical trials may not be of anticipated size of trials that are not initiated or due to enrollment issue such as unavailability of patients, competing product candidates or unanticipated safety issues. The timing of initiation or of availability of results of clinical trials maybe delayed or may never occur as a result of actions or inaction by regulators or our present or future collaboration partners. Complications in the design implementation or third party approval of clinical trials, complications in the collection or interpretation of statistical data or unanticipated safety issues and final results of clinical trials may in any event not be consistent with preclinical or interim results.

These and other risks, including those related to 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 the design and progress of clinical trials; safety and efficacy of the products being tested; 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 other scientific data; changes in the status of existing collaborative or licensing relationships; the ability of collaborators, licensees and other third parties to meet their obligations and/or discussion and decision making, XOMA’s ability to meet the demands of the United States government agency with which it has entered into its 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; uncertainties as to the costs 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 evaluating XOMA’s prospects.

I’ll now turn the call over to John Varian.

John Varian

Good afternoon and thanks for joining us. I really appreciate having the opportunity to speak with many of you for the first time on our call today. Fred will give you a quick review of the financial results for the third quarter followed by a brief Q&A. Then we’ll spend the bulk of our time together on our gevokizumab news today, and how that fits into our overarching strategy to build significant value in XOMA. That discussion will be followed by an additional Q&A session. Fred?

Fred Kurland

Thank you, John, and welcome everybody to our call. I’ll make this brief so we have plenty of time for the gevokizumab discussion. In the third quarter ended September 30, 2011, XOMA had total revenues of $16.2 million, compared with $10.9 million in the third quarter of 2010. Third quarter 2011 revenue includes $5.9 million from Servier under our collaboration agreement for gevokizumab.

Read the rest of this transcript for free on seekingalpha.com

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