By Mary Welch

Xoma Ltd. grossed $30.7 million in a private placement of 6.1 million shares with institutional investors.

The money will be used to fund development of products from the Berkeley, Calif., company's monoclonal antibody and bactericidal/permeability-increasing protein (BPI) development platforms. The company said it has enough cash to last two years.

The monoclonal antibody products include ING-1, an antibody that may be useful in treating a number of solid tumor cancers, and Genimune, a targeted gelonin fusion product for the treatment of immune cell cancers and autoimmune diseases. Xoma's BPI development programs include Mycoprex, a BPI-derived fungicidal compound, and anti-angiogenic BPI peptide-derived compounds.

Arnhold and S. Bleichroeder Inc. and Sutro & Co. Inc., both of New York, served as placement agents.

For the first nine months of 1999, Xoma reported a net loss of $37.6 million, or 73 cents per share. It had total revenues of $599,000. It had 51.4 million shares outstanding.

Xoma and its partner, Genentech Inc., of South San Francisco, are in Phase III trials with an anti-CD11a (hu1124) product, a recombinant humanized monoclonal antibody for treating moderate to severe plaque psoriasis. In addition, a Phase I/II study will be conducted in kidney transplant patients.

The company suffered a setback last year when a Phase III study of its lead product, Neuprex, was stopped early when it appeared success was not possible. The study was with patients who have undergone hemorrhagic trauma. Neuprex is derived from bactericidal/permeability-increasing protein, which is found in white blood cells. (See BioWorld Today, Sept. 29, 1999, p. 1.)

A year ago, the company raised $12 million by selling 2 million shares of its common stock to a pair of institutional investors.

Xoma's stock (NASDAQ:XOMA) closed Monday at $7.625, up 62.5 cents.