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ARTICLE | Company News

Xoma gains on Novartis IL-1 beta mAb deals

August 25, 2017 9:34 PM UTC

Xoma Corp. (NASDAQ:XOMA) jumped $2.17 (24%) to $11.10 on Friday after granting Novartis AG (NYSE:NVS; SIX:NOVN) worldwide rights to commercialize IL-1 beta mAb candidate gevokizumab (XOMA 052). The company also granted Novartis a non-exclusive license to IP covering IL-1 beta-targeting antibodies to treat cardiovascular disease.

Xoma will receive a total of $31 million up front, including a $5 million equity investment, across both deals. The company is eligible for undisclosed milestones and tiered royalties on sales of gevokizumab, as well as royalties on sales of Novartis’ Ilaris canakinumab, a marketed IL-1 beta mAb. Novartis will also settle a €12 million ($14.1 million) debt owed by Xoma to Servier (Neuilly-sur-Seine, France) under a terminated 2010 deal granting Servier global rights to gevokizumab...