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Biotech / Medical : Millennium Pharmaceuticals, Inc. (MLNM) -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (1551)	5/21/2003 2:41:45 AM
From: Icebrg	Respond to of 3044

XOMA Announces Revision of Financing Agreement for Vascular Inflammation Product Collaboration Tuesday May 20, 8:00 pm ET [I wonder who went to whom asking for a revision of terms? Anyhow, perhaps an indication that XOMA's liquidity situation is not quite as difficult, as I though it was. But they - or rather their shareholders - are facing dilution threats from more than one side. XOMA has also somehow to settle the loans they have received from Genentech to finance the development of Raptiva. No MLNM-PR on this btw. Perhaps they don't consider it material enough.] BERKELEY, Calif.--(BUSINESS WIRE)--May 20, 2003--XOMA Ltd. (NASDAQ:XOMA - News) announced today the amendment of certain terms of the financing agreement between XOMA and Millennium Pharmaceuticals, Inc. The agreement relates to an ongoing product collaboration with two Millennium biotherapeutic agents, MLN01 and CAB-2, for certain vascular inflammation indications. Under the original investment agreement signed in 2001, Millennium committed to purchase, at XOMA's option, up to $50 million worth of common shares over a three year-period, through a combination of convertible debt and equity at prevailing market prices. Key new elements of the revised payment and financing agreement include: * An extension of the maturity date of the $5.0 million outstanding convertible loan from May 2003 to February 2004. * A re-scheduling of XOMA's decision points on whether to sell the remaining $37.5 million worth of common shares from three option dates over the next 12 months, to six option dates over the next 21 months. "We're pleased with the progress of our collaboration with Millennium," said John L. Castello, XOMA's chairman, president and chief executive officer. "We believe that having more frequent but smaller payment commitments gives us more flexibility to reduce dilution and any short-term impact on XOMA's share price." As a result of these revisions, XOMA will be filing a new registration statement on Form S-3 with the Securities and Exchange Commission to cover the re-sale of shares issued to Millennium, replacing the registration statement already on file.