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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: opalapril who wrote (6387)	5/29/1998 9:58:00 AM
From: Robert K.	Read Replies (1) \| Respond to of 17367

The first 27 of 30 or so trades went off as buys at 4 7/8th but the sellers kept offering in quantity at 4 7/8th. Looks like a strong seller so far.

To: opalapril who wrote (6387)	6/1/1998 1:04:00 AM
From: aknahow	Respond to of 17367

In the real world XOMA is used as example of how technology transfer is done. Company cases [ TOC \| Previous ] XOMA CORPORATION Corporate Profile Xoma Corporation is a biopharmaceutical company developing products to treat primary infections, serious complications of infectious diseases, traumatic injury and surgery, and immunological disorders. XOMA is focused on accelerated development of pharmaceutical products derived from BPI. Neuprex(tm) (rBPI-21) is the first product from XOMA's BPI platform to reach clinical trials. A Phase III trial in severe pediatric meningococcemia patients is in progress and a second Phase III trial, to prevent infectious complications in hemorrhagic trauma patients, is planned later in 1997. Additional BPI-derived products in preclinical development include I-PREX(tm), a topical ophthalmic formulation of rBPI-21, and Mycoprex(tm), a BPI peptide antifungal product. XOMA also has considerable experience in developing and testing products for inflammatory diseases. The hu1124 humanized monoclonal antibody product is currently in development with Genentech as a treatment for psoriasis and organ transplant rejection. More infromation can be found from: Corporation news Xoma's technology strategy Questions and answers about Xoma's development, financing, and future technologies. XOMA's 1996 Web Annual Report Protection of Knowledge XOMA Corporation has issued four new U.S. patents that further protect potential medical applications and products developed from BPI (bactericidal/permeability-increasing protein), a human host-defense protein that is also XOMA's core drug development platform. These patents reflect a continuing aggressive patent program the company started several years ago and they reinforce the its conviction that BPI is a broad platform for the development of multiple pharmaceutical products, such as Neuprex(tm), I-PREX(tm) and Mycoprex(tm). Technology Management Xoma is currently trying to generate more revenues from the technology base. The CEO of XOMA, Dr. Jack Castello, emphasized this clearly at the Annual Shareholders Meeting on June 5, 1997. However, technology management is not the most important concern of the company. The most important goal of the company is to develop its own product. Xoma's lawyer is in charge of technology transfer activity. Technology Transfer Activity Xoma Corporation has had a lot of technology transfer activity by licensing patents to various organizations. Some of these licensees are international, and there has not been any specific difficulties with international organizations. The company does not have strict licensee preferences, since the motivation of licensing its patent is to generate income for its own development projects. Larger companies are preferred, however, since they are able to pay competitive rates for the licenses. The exclusivity of the agreements is decided on a case-by-case basis. Xoma believes that amicable negotiations are necessary for all parties to benefit. Xoma transfers the expression technology so that the licensee can pre-test it without a financial risk. Royalties are collected only if the licensee uses Xoma's patented technology to produce a commercial product. Much collaboration has been undertaken with several larger companies to develop the technologies that they are unable to develop in-house. In these cases Xoma is paid for its development activity, but there is no actual transfer of technologies. The results are used by the companies for potential commercialization. Xoma corporation finds these arrangements highly beneficial and intends to continue pursuing them. The company has also cooperated with universities. Xoma itself is based on technologies licensed from New York University. Licensing Activities E5® Contract Ending with Pfizer, exclusive marketing agreement licensee for E5®. Xoma has licensed the TCR (T cell receptor) technology to a company called Connective Therapeutics (recently renamed Connetics). The license was sold for roughly $2 million and offers a potential royalty stream. Xoma has licensed the anti-CD20 antibody technology to Genentech and IDEC for $3 million and a future royalty stream. This is being used in a product (IDEC-C2B8) that just concluded Phase III, and is in its BLA submission (FDA Advisory Committee meeting set for July 25). Analysts are predicting a very large market for this product, and this might generate a large stream of income for Xoma. Bacterial Cell Expression System : XOMA Corporation has granted nonexclusive licenses to Eli Lilly and Company and to Pharmacia & Upjohn AB (Stockholm, Sweden) and others for the use of its patented Bacterial cell expression technology for pharmaceutical production. XOMA's system reduces production costs, increases product yields, and improves process control in the manufacture of genetically engineered pharmaceuticals. The bacterial cell expression system is licensed to 11 companies and discussions with more companies are in progress. The technology is beginning to be recognized as very broad-based. The licensees are companies of all sizes, from small biotechs to large pharmaceuticals. These are small to medium-sized deals, but all of them could create royalty streams. The license terms typically include up-front fees, milestone payments and royalties on the future income streams of developed products. Collaboration with Universities UCLA and XOMA Researchers have worked together on the crystal structure of the BPI molecule to broaden understanding of bacterial infections and cholesterol metabolism Genentech and XOMA Agree to Develop Jointly Anti-CD11a for Psoriasis and Organ Transplant Rejection Valuation of Technologies Valuation of technologies is mostly done when negotiating the agreement. The company estimates the price it is willing to accept for the technology. Up-front fees are part of most Xoma licensing agreements, in addition to royalties and milestone payments. The milestones are tied to the production amount or to the stage of the development. [ TOC \| Previous ]