XOMA's CEO Discusses Q4 2011 Results - Earnings Call Transcript

XOMA Corporation (XOMA)

Q4 2011 Earnings Call

March 14, 2012; 04:30 pm ET

Executives

John Varian - Chief Executive Officer

Dr. Paul Rubin - Vice President & Chief Medical Officer

Fred Kurland - Vice President & Chief Financial Officer

Carol DeGuzman - Senior Director of Investor Relations

Analysts

Matt Kaplan - Ladenburg Thalmann

Jason Kantor - RBC Capital Markets

Presentation

Operator

Good day ladies and gentlemen and welcome to the XOMA, fourth 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 with instructions following at that time. (Operator Instructions).

I’ll now turn the call over to Carol DeGuzman, Senior Director of Investor Relations. Please begin.

Carol DeGuzman

Thank you operator. Good afternoon everyone. A short while ago we issued a news release, which included our financial results for the period ended December 31, 2011 and a general business update. Our Annual Report and Form 10-K is being filed with the Securities and Exchange Commission this afternoon and each of these documents will be available on our website at xoma.com. Today’s webcast also can be accessed via our website and will be available for replay until the close of business on June 10, 2012.

Leading today’s call is John Varian, XOMA’s Chief Executive Officer, who is joined by Dr. Paul Rubin, our Vice President and Chief Medical Officer and Fred Kurland, our Vice President and Chief Financial Officer.

We wish to remind our listeners that certain statements that will be made today concerning the timing of initiation of clinical trials, availability of clinical trial results, continued sales of approved products, regulatory approval of unapproved product candidates and anticipated levels of cash utilization 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, the timing and initiation of and availability of clinical trials may be delayed or may never occur as a result of actions of inaction by regulators of 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, continued sale of approved products maybe impacted by XOMAs ability to implement it’s marketing efforts, competition or unanticipated safety issues, regulatory approval of unapproved product candidates may be affected by the results of future clinical trials, actions or inaction by the FDA or unanticipated safety issues and anticipated levels of cash utilization may be other than as expected due to the unavailability of additional licensing or collaboration opportunities, inability to obtain the services of contract manufacturing or service providers on anticipated terms, higher than expected costs for clinical trials, outsourced manufacturing or other services, the effects of the pace of development spending in light of the terms of XOMA's existing collaboration arrangements, or unanticipated changes in XOMA's research and development programs or other businesses.

These and other risks, including those related to 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 others of 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 their discretion in decision-making; XOMA's ability to meet the demands of the U.S. government agency with which it has entered into with 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 uncertainties as to the costs of protecting intellectual property, are all described in more detail in XOMA's most recent filing on Form 10-K and in our other SEC filings. Please consider such risks carefully when evaluating XOMA's prospects.

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

John Varian

Thanks very much Carol. Good afternoon everyone. We’ve accomplished a great deal since we last spoke with many of you in November, although I’m sure we have quite a few first time listeners as a result of our recently completed financing.

Today’s call is a review of 2011 and we will be taking a look back at certain events that occurred in the fourth quarter of last year, but hopefully we’ll convey those activities in a manner that highlights how they have positioned us for success going forward. I can tell you that the rest of the management team and I have never been more convinced that XOMA as a business is ready to take advantage of it’s long history of scientific successes.

We are transitioning away from our historic reliance on licensing deals and royalty revenue, to a company, which benefits more fully from our own scientific discoveries. With XOMA we envision we’ll be a self-sustaining commercial organization in the U.S., with partners around the globe supporting our products in local markers.

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

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