<SEC-DOCUMENT>0001193125-16-800853.txt : 20161222
<SEC-HEADER>0001193125-16-800853.hdr.sgml : 20161222
<ACCEPTANCE-DATETIME>20161221201702
ACCESSION NUMBER:		0001193125-16-800853
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20161219
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Cost Associated with Exit or Disposal Activities
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20161222
DATE AS OF CHANGE:		20161221

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			XOMA Corp
		CENTRAL INDEX KEY:			0000791908
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				942756657
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14710
		FILM NUMBER:		162064915

	BUSINESS ADDRESS:	
		STREET 1:		2910 SEVENTH ST
		CITY:			BERKELEY
		STATE:			CA
		ZIP:			94710
		BUSINESS PHONE:		5106441170

	MAIL ADDRESS:	
		STREET 1:		2910 SEVENTH ST
		CITY:			BERKELEY
		STATE:			CA
		ZIP:			94710

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	XOMA LTD /DE/
		DATE OF NAME CHANGE:	19990107

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	XOMA CORP /DE/
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d316255d8k.htm
<DESCRIPTION>8-K
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<TITLE>8-K</TITLE>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>WASHINGTON, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): December&nbsp;19, 2016 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>XOMA CORPORATION </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact
name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
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<TD VALIGN="top" ALIGN="center"><B>001-14710</B></TD>
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<TD VALIGN="top" ALIGN="center"><B>52-2154066</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>incorporation)</B></P></TD>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File No.)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>XOMA Corporation </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2910 Seventh Street </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Berkeley, CA 94710 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of principal executive offices and zip code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code: (510)&nbsp;204-7200 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below): </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;1.01 Entry Into a Material Definitive Agreement </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On December&nbsp;21, 2016, XOMA Corporation (&#147;XOMA&#148;) and its wholly owned subsidiary XOMA (US) LLC (&#147;Seller&#148;) entered into two Royalty
Interest Acquisition Agreements (together, the &#147;Acquisition Agreements&#148;) with HealthCare Royalty Partners II, L.P. (&#147;HCRP&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Under
the first Acquisition Agreement, Seller sold its right to receive royalties on future sales of products subject to a License Agreement, dated August&nbsp;18, 2005, between Seller and Wyeth Pharmaceuticals (now Pfizer, Inc.) (the &#147;Pfizer License
Agreement&#148;) for a payment of $6,500,000 upfront, plus the potential for additional payments totaling $4,000,000 in the event of the achievement of three specified net sales milestones in 2017, 2018 and 2019. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Under the second Acquisition Agreement, Seller sold all rights to milestone payments and royalties under an Amended and Restated License Agreement dated
October&nbsp;27, 2006 between Seller and Dyax Corp. (the &#147;Dyax License Agreement&#148; and, together with the Pfizer License Agreement, the &#147;License Agreements&#148;) for a payment of $11,500,000. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Acquisition Agreements contain standard representations and warranties of XOMA and Seller, including with respect to organization, authorization,
intellectual property matters and tax matters, and certain negative covenants with respect to the License Agreements, as well as indemnification by XOMA and Seller of HCRP against certain losses. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On December&nbsp;21, 2016, Seller also entered into two Protective Rights Agreement (together, the &#147;PRAs&#148;) with HCRP. Under each PRA, Seller granted
to HCRP, among other things, a security interest in all of its right, title and interest in, to and under the Seller&#146;s rights to receive payments under the License Agreements and certain related rights and proceeds thereof. The security
interests are limited to the rights to receive payments under the License Agreements. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The above description of the Acquisition Agreements is a summary of
their material terms, does not purport to be complete and is qualified in its entirety by reference to the Acquisition Agreements which will be filed as exhibits to XOMA&#146;s Annual Report on Form 10-K for the year ending December&nbsp;31, 2016.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Additionally, on December&nbsp;21, 2016, the XOMA entities entered into Amendment No.&nbsp;1 (the &#147;Amendment&#148;) to the Loan and Security
Agreement, dated February&nbsp;27, 2015, by and among XOMA, XOMA (US) LLC, XOMA Commercial LLC and Hercules Technology Growth Capital, Inc. (&#147;Hercules&#148;). Under the Amendment, Hercules agreed to release its security interest on the assets
subject to the Acquisition Agreements. In exchange, the XOMA entities will, in January 2017, repay $10,000,000 of the current outstanding principal balance owed to Hercules. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The above description of the Amendment is a summary of its material terms, does not purport to be complete and is qualified in its entirety by reference to
the Amendment which will be filed as an exhibit to XOMA&#146;s Annual Report on Form 10-K for the year ending December&nbsp;31, 2016. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;2.01
Completion of Acquisition or Disposition of Assets </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information set forth in Item&nbsp;1.01 of this Current Report on Form 8-K is incorporated
herein by reference. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;2.05 Costs Associated with Exit or Disposal Activities </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On December&nbsp;19, 2016, the Board of Directors of XOMA approved a restructuring of XOMA&#146;s business. The restructuring includes a reduction-in-force in
which XOMA will reduce its headcount by 57 positions. The restructuring is based on XOMA&#146;s decision to focus its research and development efforts on clinical development, with an initial focus on the XOMA 358 clinical programs. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In connection with the foregoing changes to the Company&#146;s business, the Company anticipates it will incur
aggregate restructuring charges of approximately $5.8 million. The aggregate projected restructuring charges consist of approximately $5.2 million in cash payments related to one-time termination benefits, including severance, benefit continuation
costs and outplacement services associated with the elimination of 57 positions and approximately $0.6 million in non-cash stock compensation expense. These charges are expected to be recognized in the fourth quarter of 2016. The Company may incur
other charges and will record these expenses in the appropriate period as they are determined. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;5.02 Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Retirement of Chief Executive
Officer </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On December&nbsp;21, 2016, John Varian, XOMA&#146;s Chief Executive Officer and principal executive officer, retired, effective immediately.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Under Mr.&nbsp;Varian&#146;s Officer Employment Agreement dated January&nbsp;4, 2012 and previously filed with the Securities and Exchange Commission as
Exhibit 10.10G to XOMA&#146;s Annual Report on Form 10-K for the period ended December&nbsp;31, 2011, as a result of Mr.&nbsp;Varian&#146;s retirement, he is entitled to (i)&nbsp;a severance payment equal to his current annual base salary,
(ii)&nbsp;a severance payment equal to the pro-rated portion of his current annual target bonus, (iii)&nbsp;payment for benefits coverage for 12 months and (iv)&nbsp;outplacement services for 12 months not to exceed $15,000 in value. Under his
Officer Employment Agreement, all payments and benefits to Mr.&nbsp;Varian are subject to his compliance with confidentiality and non-competition provisions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Varian is also entitled to certain benefits under the terms of a Retention Benefit Agreement dated March&nbsp;11, 2014, previously filed with the
Securities and Exchange Commission as Exhibit 10.28 to XOMA&#146;s Annual Report on Form 10-K for the period ended December&nbsp;31, 2013. Upon his retirement, under the Retention Benefit Agreement, each of the options and restricted stock units
held by Mr.&nbsp;Varian will become fully vested as of his retirement date and each option will remain vested and exercisable for the full term of such option until the expiration date set forth in the applicable stock option agreement, but in no
event later than ten years following the grant date of the option. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Varian will continue to serve as a member of XOMA&#146;s Board of Directors.
</P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Appointment of New Chief Executive Officer </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Effective December&nbsp;21, 2016, XOMA&#146;s Board of Directors appointed James Neal, currently XOMA&#146;s Senior Vice President and Chief Operating Officer,
as XOMA&#146;s Chief Executive Officer and a member of the Board of Directors. As Chief Executive Officer, Mr.&nbsp;Neal will serve as XOMA&#146;s principal executive officer. In connection with Mr.&nbsp;Neal&#146;s promotion to Chief Executive
Officer, the Board of Directors approved a new equity compensation grant for Mr.&nbsp;Neal, under which he will be granted options to purchase 100,000 shares of XOMA common stock under the terms of XOMA&#146;s Amended and Restated 2010 Long Term
Incentive and Stock Award Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Neal, 60, joined XOMA in 2009 as its Vice President, Business Development and was promoted to his current
position in 2015. Prior to joining XOMA, Mr.&nbsp;Neal was Acting Chief Executive Officer of Entelos, Inc., a leading biosimulation company. Previously in 2007, Entelos acquired Iconix Biosciences, a privately held company where Mr.&nbsp;Neal served
as Chief Executive Officer and established multi-year collaborations with Bristol-Myers Squibb, Abbott Labs, Eli Lilly and the U.S. Food and Drug Administration. Mr.&nbsp;Neal earned his B.S. in Biology and his M.S. in Genetics and Plant Breeding
from the University of Manitoba, Canada, and holds an Executive MBA degree from Washington University in St. Louis, Missouri. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Departure of Vice President, Human Resources and Information Technology </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On December&nbsp;21, 2016, Chris Wells&#146; employment with XOMA as Vice President, Human Resources and Information Technology was terminated, effective as of
June&nbsp;30, 2017. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Under Mr.&nbsp;Wells&#146; Officer Employment Agreement dated December&nbsp;16, 2011 he is entitled to (i)&nbsp;a severance payment
equal to 0.75 of his current base salary, (ii)&nbsp;a severance payment equal to the pro-rated portion of his current annual target bonus (iii)&nbsp;payment for benefits coverage for 9 months and (iv)&nbsp;outplacement services for 12 months not to
exceed $8,000 in value. Under his Officer Employment Agreement, all payments and benefits to Mr.&nbsp;Wells are subject to his compliance with confidentiality and non-competition provisions. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Departure of Executive Vice President and Chief Scientific Officer </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On December&nbsp;21, 2016, Patrick J. Scannon&#146;s employment with XOMA as Vice President and Chief Scientific Officer was terminated. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Under Dr.&nbsp;Scannon&#146;s Officer Employment Agreement dated March&nbsp;11, 2014, he is entitled to: (i)&nbsp;a severance payment equal to 0.75 of his
current base salary, (ii)&nbsp;a severance payment equal to the pro-rated portion of his current annual target bonus (iii)&nbsp;payment for benefits coverage for 9 months and (iv)&nbsp;outplacement services for 12 months not to exceed $8,000 in
value. Under his Officer Employment Agreement, all payments and benefits to Dr.&nbsp;Scannon are subject to his compliance with confidentiality and non-competition provisions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dr.&nbsp;Scannon also resigned from his position as a member of the Board of Directors, effective December&nbsp;21, 2016. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;9.01 Financial Statements and Exhibits </B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" NOWRAP>99.1</TD>
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<TD VALIGN="top">Press Release dated December&nbsp;21, 2016</TD></TR>
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<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">Date: December&nbsp;21, 2016</TD>
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<TD VALIGN="top" COLSPAN="3">XOMA Corporation</TD></TR>
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<TD VALIGN="top">By:</TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Denis J. Quinlan</P></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top">Denis J. Quinlan</TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"></TD>
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<TD VALIGN="top">Sr. Corporate Counsel and Corporate Secretary</TD></TR>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT INDEX </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman"><B>Description</B></P></TD></TR>


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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Press Release dated December 21, 2016</TD></TR>
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<HTML><HEAD>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 99.1 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt;margin-bottom:0pt">


<IMG SRC="g316255g1222034707629.jpg" ALT="LOGO">
 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>XOMA Announces up to $22 Million Generated from Sale of Royalty Streams </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>from Two License Agreements to HealthCare Royalty Partners and </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Provides Corporate Update </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Up to $22&nbsp;million in revenue generated through sale of royalty streams from two license agreements to HealthCare Royalty Partners, with an initial $18&nbsp;million payment and up to $4&nbsp;million in future
milestones </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="white-space:nowrap">Non-dilutive</FONT> funding to support clinical advancement of XOMA 358 in a streamlined manner </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Operational transformation eliminates 57 positions </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Significantly reduced operating expense structure going forward </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Jim Neal named Chief Executive Officer and joins the Board of Directors, replacing John Varian who retires but remains a member of the Board of Directors </TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000">&nbsp;</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">BERKELEY, Calif., December&nbsp;21, 2016 (GLOBE NEWSWIRE) &#151; XOMA Corporation (Nasdaq:XOMA), a leader in the discovery and development of therapeutic
antibodies, today announced several corporate actions to further streamline its operations to focus on XOMA 358 clinical development, monetize <FONT STYLE="white-space:nowrap">non-core</FONT> assets, and strengthen its balance sheet. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&#147;With this transaction, we have generated $83&nbsp;million in <FONT STYLE="white-space:nowrap">non-dilutive</FONT> liquidity since October 2015,&#148;
said Jim Neal, newly appointed Chief Executive Officer and Director of XOMA. &#147;HealthCare Royalty Partners (&#147;HCR&#148;) has an established history of supporting the biotechnology industry. They provide companies with the opportunity to
realize value in <FONT STYLE="white-space:nowrap">non-core</FONT> assets without diluting equity shareholders. Two royalty agreements from XOMA&#146;s extensive portfolio of licensed assets particularly attracted HCR&#146;s interest. XOMA&#146;s
scientific discoveries have served us well, financing our clinical development over the past two years.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Paul Hadden, Managing Director, HealthCare
Royalty Partners, said, &#147;We are extremely pleased to partner with XOMA on this asset sale, providing <FONT STYLE="white-space:nowrap">non-dilutive</FONT> capital at an important point in their evolution.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Tom Burns, Vice President, Finance, and Chief Financial Officer of XOMA, commented, &#147;To further reduce our operating costs, we have taken two actions.
First, we are using a portion of the proceeds from this transaction to partially repay our debt held by Hercules Technology Growth Capital, Inc. (&#147;Hercules&#148;). Second, to reflect our operational focus on advancing XOMA 358, we are
streamlining our team and eliminating 57 positions. These two actions will significantly reduce our expenses so the company can more efficiently fund XOMA 358 clinical development.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">John Varian stated, &#147;I believe XOMA is well positioned, and this is the right time for me to retire and turn the reins over to Jim Neal. He has the right
plan in place to ensure the company achieves its next clinical development and financial goals.&#148; </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Denny Van Ness, XOMA&#146;s Chairman of the Board, stated, &#147;As Chief Operating Officer, Jim has been leading
the XOMA 358 project team, as well as leading the company&#146;s business development activities. The Board, John, and I have every confidence that Jim and his team will take XOMA 358 forward in a cost-effective manner and continue to drive the
licensing of XOMA&#146;s <FONT STYLE="white-space:nowrap">non-core</FONT> assets.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&#147;XOMA 358 is an important potential therapy for the patients
and families affected by Congenital Hyperinsulinism (&#147;CHI&#148;) or who experience hypoglycemia post bariatric surgery. We now have over 25 patients enrolled in our two Phase&nbsp;2 <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">Proof-of-Concept</FONT></FONT> studies, which reflects the desire for new therapeutic options in these rare indications. We need to do everything possible to develop XOMA 358 and bring it to market,&#148; Mr.&nbsp;Neal
added. &#147;The financing and the operational cost reductions we announced today allow us to aggressively move forward. Our next step is launching our multi-dose study in CHI patients. Importantly, we have retained other <FONT
STYLE="white-space:nowrap">non-core</FONT> assets that could potentially be deployed in the future to fund our clinical development efforts.&#148; </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>HealthCare Royalty Partners Asset Sale </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">XOMA sold its
rights under two license agreements to its patented bacterial cell expression technology. The first of these covers TRUMENBA<SUP STYLE="font-size:85%; vertical-align:top">&reg;</SUP>, a meningococcal group B vaccine marketed by Pfizer, on which XOMA
has been receiving low single-digit royalties from commercial sales. The second agreement is with Dyax Corp. All rights to future royalties and other payments associated with these licenses have been acquired by HCR as detailed in the Form <FONT
STYLE="white-space:nowrap">8-K</FONT> filed on December&nbsp;21, 2016. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Hercules Technology Growth Capital, Inc. </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">XOMA entered into a Loan and Security Agreement with Hercules in 2015 under which XOMA borrowed $20.0&nbsp;million. The company has been paying principal and
accrued interest since July&nbsp;1, 2016, and the loan is scheduled to mature on September&nbsp;1, 2018. On September&nbsp;30, 2016, the outstanding balance was $18.5&nbsp;million. In January, XOMA will apply $10&nbsp;million from the HCR asset sale
proceeds to reduce its debt obligation to Hercules. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Corporate Restructuring </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Based upon the data being generated in the XOMA 358 clinical studies in patients with hypoglycemia due to Congenital Hyperinsulinism or post bariatric surgery,
XOMA is preparing to expand the program into multi-dose clinical studies. These two indications are rare conditions with very high unmet therapeutic needs. Therefore, the company is concentrating its investments on clinical development, with an
initial focus on the XOMA 358 clinical programs. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">To reflect this narrowed corporate focus, the company will reduce its headcount by 57 positions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&#147;We have shown the assets that XOMA has discovered and developed hold significant interest to companies dedicated to improving human health. Importantly,
we retain the future revenue streams from our most recent licensing agreements with Novartis and NovoNordisk,&#148; commented Mr.&nbsp;Burns. &#147;We continue to expect we will earn a $10&nbsp;million milestone payment within the next few months
under one of our existing license or collaboration agreements. In light of the interest we have received from our recently unveiled <FONT STYLE="white-space:nowrap">IL-2</FONT> antibody program for immuno-oncology and our PTH1R program for oncology
indications, we believe these two assets could provide additional funding to support our development plans for XOMA 358 in CHI and post-bariatric surgery.&#148; </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>About XOMA Corporation </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">XOMA Corporation is a leader in the discovery and development of therapeutic antibodies. The Company&#146;s innovative product candidates result from its
expertise in developing ground-breaking monoclonal antibodies, including allosteric antibodies, which have created new opportunities to potentially treat a wide range of human diseases. XOMA&#146;s scientific research has produced a portfolio of
endocrine assets, each of which has the opportunity to address multiple indications. The Company&#146;s lead product candidate, XOMA 358, is an allosteric monoclonal antibody that reduces insulin receptor activity, which could have a major impact on
the treatment of hyperinsulinism. The Company has ongoing Phase&nbsp;2 development activities for XOMA 358 in patients with congenital hyperinsulinism, and in patients with hypoglycemia after bariatric surgery. For more information, visit
<U>www.xoma.com</U>. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>About HealthCare Royalty Partners </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">HealthCare Royalty Partners (HCR) is a private investment firm that purchases royalties and, using debt-like structures, invests in commercial or
near-commercial stage assets for life science companies. HCR has raised approximately $3.4&nbsp;billion in committed capital and is headquartered in Stamford, CT.&nbsp;Over the past decade, HCR&#146;s senior professionals have completed more than 60
healthcare investments. For more information, visit&nbsp;<U>www.healthcareroyalty.com</U>. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Forward-Looking Statements </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Certain statements contained in this press release including statements related to reaching future payment milestones, the development and potential
commercialization of XOMA 358, the impact of XOMA&#146;s elimination of employee positions and planned repayment of Hercules debt, the transition in XOMA&#146;s leadership, the expected sources of future revenues, and other statements that relate to
future periods are each forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions that may not prove accurate, and
actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry and for companies engaged in the development of new products in a regulated market. Potential risks to XOMA meeting these
expectations are described in more detail under the heading &#147;Risk Factors&#148; contained in XOMA&#146;s quarterly report on Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the quarter ended&nbsp;September&nbsp;30, 2016,&nbsp;which is on
file with the&nbsp;Securities and Exchange Commission, and in other SEC filings. Consider such risks carefully when considering XOMA&#146;s prospects. Any forward-looking statement in this press release represents XOMA&#146;s views only as of the
date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA disclaims any obligation to update any forward-looking statement, except as required by law. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Contact: </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Company and Investor Contact: </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Tom Burns, Chief Financial Officer </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">510-204-7200</FONT></FONT> </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">burns@xoma.com </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Juliane Snowden </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Oratorium Group, LLC </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">jsnowden@oratoriumgroup.com </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Media contact: </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Colin Sanford </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">W2O Group </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">415-946-1094</FONT></FONT> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">csanford@w2ogroup.com </P>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
