XOMA's CEO Discusses Q2 2012 Results - Earnings Call Transcript

XOMA Corporation (XOMA)

Q2 2012 Earnings Call

August 7, 2012 4:30 pm ET


Ashleigh Barreto – Investor Relations

John W. Varian – Chief Executive Officer

Paul D. Rubin – Senior Vice President, Research and Development and Chief Medical Officer

Fred Kurland – Vice President-Finance and Chief Financial Officer


Adnan Butt – RBC Capital Markets

Matthew Kaplan – Ladenburg Thalmann & Co.

Liana Moussatos – Wedbush Securities

Thomas Yip – MLV & Co.

Whitney Ijem – Canaccord Genuity Inc.

Joseph Pantginis – Roth Capital Partners



Good afternoon, ladies and gentlemen, and welcome to XOMA Corporation’s Second Quarter 2012 Financial Results and Corporate Update 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 follow at that time. (Operator Instructions) As a reminder, this call may be recorded.

I would now like to turn the call over to your host for today, Ashleigh Barreto, Investor Relations at XOMA. You may proceed.

Ashleigh Barreto

Thank you, operator. Good afternoon and welcome to XOMA Corporation’s Second quarter 2012 financial results and corporate update conference call. On our call today are John Varian, Chief Executive Officer; Dr. Paul Rubin, Senior Vice President, Research and Development and Chief Medical Officer; and Fred Kurland, Chief Financial Officer.

Certain statements made during this call including but limited to statement related to anticipated timing of initiation and completion of clinical trials, anticipated size of clinical trials, continued sales of approved products, regulatory approval of unapproved product candidates and anticipated restructuring charges, sufficiency of our cash resources, and anticipated levels of cash utilization or 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. And actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry and for companies engaged in development of new products in a regulated market.

Potential risk to XOMA, meeting these expectations are described in more detail in XOMA’s most recent filings on Form 10-K and other SEC filings. Consider such risks carefully when considering XOMA’s prospects.

Any forward-looking statement in this conference call represent XOMA’s views only as of the date of this conference call and should not be relied upon as representing its views as of any subsequent date. XOMA disclaims any obligation to update any forward-looking statement, except as those required by applicable law.

And with that I’ll turn the call over to John Varian. John?

John W. Varian

Thanks Ashleigh. Good afternoon everyone and thank you for joining us. Our second quarter was devoted to launching both the gevokizumab global Phase 3 non-infectious uveitis trial and our Phase 2 trial in erosive osteoarthritis of the hand. The initiation of our first Phase 3 study of gevokizumab was the culmination of a significant amount of work by the XOMA team and their colleagues at our partner Servier.

I want to start my comments today with a big thank you to the joint team for a job well done. Paul Rubin, who leads the XOMA team is with Fred Kurland and me to answer any questions you have about these trials and their protocols. Another crucial effort in our development of gevokizumab is its initial clinical and commercial manufacturer.

As you remember, in January of this year, we announced our decision to outsource Phase 3 and commercial manufacturing on a go-forward basis. By the end of April, we completed our final run in XOMA’s 31,000 square foot lease facility. And we have now exited this building. Our lease runs out next April, but as you will hear from Fred later on, we have been able to sublease the facility to a third party.

We currently have enough gevokizumab on hand for all the planned studies in non-infectious uveitis, as well as our ongoing proof of concept studies. Last week, we announced the signing of a three-way agreement between XOMA, Servier and Boehringer Ingelheim or BI. For BI to manufacture gevokizumab going forward.

Our decision to select BI was based on a collaborative, and through evaluation of the world's leading antibody manufacturers, with capabilities both in Europe and the U.S. We in Servier are already working with our colleagues at BI, to ensure that technology transfer is made in a stepwise and thoughtful manner. We are happy to work with such a premier organization to supply all future gevokizumab clinical and commercial needs.

You all know XOMA’s expressed strategy by now, invest in value creating activities. Over the past seven months, we primarily spent our time, with you discussing gevokizumab. We haven't spent much time, discussing our progress since become in the U.S distributor of ACEON nor have we provided detailed update on the perindopril and amlodipine, fixed dose combination program, but let me be clear, gevokizumab is our absolute top priority, but these other assets also reflect our investment in value creating activities, so we want to take some time today to provide an update on the perindopril franchise.

ACEON as you recall was created by Servier and is the branded version of the generic ACE inhibitor, perindopril erbumine. It was most recently distributed in the U.S. by Abbott. In January, we announced that we had acquired rights to the perindopril franchise and we began our commercial operations on January 23. In late March, we made our first shipment of ACEON bearing the XOMA label to distributors. While transferring distribution of any product between two companies has its challenges, we are very pleased with the progress we are making.

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

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