XOMA Streamlines Operations to Invest in Value-Creating Activities; Cuts 34% of Workforce

XOMA Corporation XOMA today announced it has implemented significant organizational and structural changes that are designed to sharpen the Company's focus on value-creating opportunities led by gevokizumab and the Company's unique antibody discovery and development capabilities. XOMA plans to reduce personnel by 84 positions, or 34%, including 50 positions to be eliminated immediately and the remainder by the end of the first quarter of this year. The staff reductions result primarily from the Company's decisions to utilize a contract manufacturing organization for Phase 3 and commercial production and to eliminate internal research functions that are non-differentiating or that can be obtained cost-effectively by contract service providers. XOMA anticipates taking one-time charges for restructuring and related severance costs totaling approximately $6.0 million during 2012, of which $3.9 million will result in cash charges. In the first quarter of 2012, the Company expects to take a charge of approximately $3.6 million.