If Raptiva fails, they really ought to throw in the towel. Chances of raising cash would be low to non-existent, the MLNM deal financing would become impossible, and the Genentech convertible would end up toxic.
Forget bpi - someone will pick it up from the corpse.
If they struggle on, Genentech will probably end up owning them by 2005. Best bet would be to sell out to the highest bidder (the antibody IP has to be worth quite a bit of money in the right hands).
We have financed, and anticipate continuing to finance, our most significant development program, Raptiva(TM), principally by borrowing from Genentech, and this debt is convertible at XOMA's option into our common shares. The outstanding amount of such debt as of December 31, 2002 was approximately $63.0 million. This debt will come due at the earlier of April of 2005 or first product approval (which could be before the end of 2003). Unless we secure substantial alternative financing, it is likely that some or all of this debt, as well as some or all of any convertible debt issued in the future as part of this financing arrangement, will be converted into equity when it comes due rather than be repaid in cash, resulting in the issuance of additional common shares.
Our financing arrangement with Millennium includes a $5.0 million convertible note we issued to Millennium in November of 2001, which comes due in May of 2003 and may be converted into common shares at that time. In addition, we have the option to issue up to $42.5 million worth of common shares to Millennium over the next 18 months, including the conversion of current outstanding convertible debt. The total amount issuable in 2003, including debt conversion, could be $27.5 million... |
