BERKELEY, Calif. -- Xoma Corp. filed for a public offering of 3million shares of common stock on Tuesday. The company alsoannounced that although it nearly doubled revenues for theyear ended Dec. 31, it also increased losses by 25 percent.
Proceeds of the stock offering will be used for development ofXoma's products for treatment of gram-negative sepsis, graft-vs.-host disease and rheumatoid arthritis, and for capitalexpenditures, including expansion of manufacturing facilities.
Xoma is awaiting Food and Drug Administration approval tomarket E5 to treat gram-negative sepsis and CD5 Plus to treatGVHD. However, Xoma said that neither drug has yet beenscheduled for review by an FDA advisory committee.
Xoma's 1990 revenues were $20.5 million, compared with 1989revenues of $10.4 million. Its 1990 net loss was $23.7 million,compared with $18.9 million in 1989. The company attributedthe rise in revenues to sales of E5 to Pfizer Inc. and licensingfees from Ortho Pharmaceutical in connection with Xoma'simmune system disorders program. Additional costs forproduct approvals were blamed for the loss.
Xoma stock (NASDAQ:XOMA) closed down $1.25 Tuesday at$28.
If the stock offering is completed, Xoma will have about 17.9million shares of common stock outstanding. Underwriters areAlex. Brown & Sons Inc. of Baltimore, Lazard Freres & Co. andLehman Brothers, both of New York, and Vector SecuritiesInternational Inc. of Deerfield, Ill. -- Karen Bernstein
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