Transcript Non-dilutive cash raised

January 2017
New Year … New Focus
 Dramatically reduced cost structure, however retaining key
capabilities
• Operating cash burn: previously $4.5M/month, beginning July 1 < $2M/month
• Retained capabilities: clinical, BD, finance
 Non-dilutive cash raised
• Recent $18M royalty sale, plus $4M possible milestones
• $10M milestone anticipated soon
 Balance sheet clean up
• $10M reduction in Hercules debt
 New leadership – Jim Neal CEO
• John Varian retired - remaining on BOD
 Advancing XOMA 358 in Congenital Hyperinsulinism (CHI) & PostBariatric Surgery Hyperinsulinism (PBS)
• Completing Phase 2 Proof-of-Concept studies in CHI & PBS
• Plan to initiate multi-dose clinical studies in CHI & PBS
 Additional assets to out-license
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Dramatically reduced cost structure, retains
key capabilities
 Fixed-cost infrastructure now greatly reduced
• Building square footage: ~115k in 2015. Anticipate ~5k in 2017
• Headcount: ~180 in 2015. ~20 in 2017
 Expenses more variable in nature
• Targeted spend to obtain critical inflection points via outsource
relationships
- Utilize CMO and CROs
- Augment BD activities with outside expertise
 Key capabilities retained
• Small internal clinical team to advance XOMA 358 leveraging external
expertise
• Business development capability
- Many assets in the closet to monetize
• Access to public markets
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Non-dilutive cash raise
 Up to $22M in non-dilutive financing via asset sale (Trumenba
& Dyax) to Health Care Royalty Partners
• $18M received 12/21/16
• Up to $4M in sales-based milestones
 All other collaboration & licensing potentials retained by
XOMA, including:
• Novartis TGFβ collaboration (up to $480M in milestones & double-digit
royalties)
• Novartis CD40 license (double-digit royalties)
• Novo Nordisk collaboration (up to $290M in milestones & tiered
royalties)
• Novel IL-2 immuno-oncology antibody program unveiled at SITC
• Unique functional antibody antagonists targeting PTH1R, a G-proteincoupled receptor involved in the regulation of calcium metabolism
• IL-1β antibody allosteric modulator
 Anticipate earning $10M milestone soon from existing
collaboration
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Streamlined focus on XOMA 358
 Novel first-in-class allosteric modulator of the insulin receptor
 Hypoglycemia associated with CHI and PBS
• July 2016 – Orphan Drug Designation received in EU for CHI
• Sept 2016 – Initial data from first 9 patients enrolled confirmed first-inclass allosteric antibody is exhibiting inhibition of insulin signaling
• Dec 2016 – > 25 patients enrolled
• Jan 2017 – MHRA approval for multi-dose in patients 2+ years
 Anticipated 2017 Milestones
• Complete Phase 2a single-dose POC studies in CHI and PBS
• Initiate multi-dose Phase 2 study in CHI patients 2+ years
• Initiate multi-dose Phase 2 study in PBS patients
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