On November 4, 2021 XOMA Corporation (Nasdaq: XOMA) reported its third quarter 2021 financial results and provided a recent operations update (Press release, Xoma, NOV 4, 2021, View Source [SID1234594486]).
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"Our portfolio of potential milestone and royalty assets continues to grow and advance in the clinic. In the third quarter, we acquired an economic interest in Checkmate Pharmaceuticals’ vidotulimod (CMP-001), and we were delighted to learn Compugen’s licensee, AstraZeneca, had dosed the first patient in a Phase 1/2 study with AZD2936, which triggered a $0.5 million milestone payment to XOMA from Compugen. Last month, we announced a significant transaction for XOMA, the purchase of rights to a 0.5% commercial payment on faricimab, a BLA-review-stage asset, for a $6 million upfront plus potential future milestone payments to Affitech SA. Three assets in our portfolio received special designations from the U.S. Food and Drug Administration. Additionally, there was meaningful progress amongst our portfolio as partners expanded their clinical development programs," stated Jim Neal, Chief Executive Officer of XOMA.
"We have further strengthened XOMA’s team in the past few months. Heather L. Franklin, President and Chief Executive Officer of Blaze Bioscience, Inc., joined our Board of Directors this summer. We were very pleased to attract two accomplished talents: Joyce Chan joined as our Vice President, Scientific Analysis, and Christopher Baldwin as our Vice President, Legal. Joyce spent 16 years at Amgen, both as a scientist and in business development, licensing, and alliance management. Chris combines significant experience providing legal counsel with entrepreneurial experience, both of which are important for XOMA’s business operations and our lean operating structure.
"I am pleased with the progress both our team and our partners have made in 2021, and we express our gratitude to all of the patients who participate in our partners’ clinical trials," Mr. Neal concluded.
Financial Results
XOMA recorded total revenues of $0.9 million for the third quarter of 2021, compared with $0.6 million in the third quarter of 2020. The increase for the three months ended September 30, 2021, as compared to the corresponding period of 2020, was primarily due to a $0.5 million milestone earned under our license agreement with Compugen Ltd., which was triggered by the dosing of the first patient in a Phase 1/2 study of AZD2936, a TIGIT/PD-1 bispecific antibody derived from COM902, that is being developed by AstraZeneca.
Research and development expenses were $30,000 and $34,000, respectively, for the third quarters of 2021 and 2020.
General and administrative ("G&A") expenses were $4.3 million for the third quarter of 2021, compared to $3.2 million for the third quarter of 2020. The increase of $1.1 million for the three months ended September 30, 2021, as compared to the corresponding period of 2020, was due primarily to a $0.5 million increase in salaries and related expenses, a $0.3 million increase in consulting costs, and $0.1 million increase in legal and insurance costs.
In the third quarter of 2021, G&A expenses included $0.8 million in non-cash stock-based compensation expense, compared with $0.7 million in the third quarter of 2020. The Company’s net cash used in operations in the third quarter of 2021 was $3.1 million, as compared with $2.4 million during the third quarter of 2020.
In the third quarter of 2020, XOMA recorded $0.4 million in interest expense. In June 2021, the Company repaid its outstanding debt obligations to Silicon Valley Bank and Novartis in full.
Net loss for the third quarter of 2021 was $4.4 million, compared to net loss of $1.1 million for the third quarter of 2020.
On September 30, 2021, XOMA had cash of $68.8 million. The Company ended December 31, 2020, with cash of $84.2 million. The Company continues to believe its current cash position will be sufficient to fund XOMA’s operations for multiple years.