Xoma, Novartis restructure vaccine agreement

California-based Xoma is restructuring its collaboration pact with Novartis Vaccines and Diagnostics. As part of the updated pact, Xoma gets an up-front payment of $6.2 million. Novartis has also agreed to fully fund all future R&D expenses; reduce existing debt by $7.5 million; pay potential milestones of up to $14 million and royalty rates for two ongoing product programs, including HCD122; and provide Xoma with options to develop or receive royalties on four other programs currently pending selection. In exchange, Novartis gains control of the HCD122 program and an additional ongoing program. HCD122 is a fully human monoclonal antibody currently in Phase I/II trials for lymphoma and multiple meyloma.

"The restructured agreement with Novartis allows Xoma to focus our resources on proprietary projects like XOMA 052, an anti-inflammatory drug candidate designed for use in multiple diseases, while maintaining a share of the potential value of the product candidates resulting from the collaboration,'' noted Xoma CEO Steven Engle.

- see Xoma's release

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