News Headlines Article

Hot cancer immunotherapy field brings Xoma a potential half-billion dollar deal
San Francisco Business Times

Xoma Corp., whose stock crashed in July on the failure of its lead drug against an eye disease, said today it signed a potential $530 million licensing deal with Swiss drug developer Novartis AG for an experimental cancer immunotherapy treatment.

Xoma stock shot up 43 percent, or 32 cents per share to $1.07 in late trading Thursday. Initially, the deal disclosed earlier Thursday would give the Berkeley company (NASDAQ: XOMA) $37 million upfront from Novartis (NYSE: NVS). That would be a financial shot in the arm for a company with an accumulated deficit of $1.16 billion over its 31-year history and cash and equivalents of $51 million as of June 30.