XOMA, a Berkeley, Calif.-based provider of discovery and development of therapeutic antibodies, has reported second-quarter financial results. Due to missed endpoints in a key trial, the company is restructuring.

Chief Executive Officer of XOMA John Varian said, “Over the past two weeks, in response to our disappointing EYEGUARD-B results, we’ve made some hard decisions. As of the end of August, and in coordination with Servier, we expect to dramatically and quickly reduce our exposure to expenses related to the remaining EYEGUARD clinical development program. We will advance gevokizumab in the ongoing phase III pyoderma gangrenosum program, as the data generated in the EYEGUARD-B study, as well as earlier studies of gevokizumab and other IL-1 therapies, is leading us to believe that IL-1 beta modulation may be best suited for acute, highly inflammatory episodic conditions such as pyoderma gangrenosum. We are building certain blinded analyses into the studies to allow us to monitor our progress in a thoughtful and disciplined manner.

“Additionally,” Varian said, “we will launch an effort to consider strategic options for XOMA’s manufacturing and biodefense operations to determine if an alliance or other structure could take greater advantage of these valuable capabilities. These collective decisions will be accompanied by organizational changes, and XOMA will be downsized appropriately to support the advancement of XOMA 358 and other endocrine assets. Most of the changes will occur in August; the rest are expected to be completed by the end of the year. These changes will result in a smaller, focused organization staffed to support the growth and development of our endocrine portfolio.”

XOMA reported total revenues of $2.5 million in the second quarter ended June 30, compared with $6 million in the corresponding period of 2014. The reduction in 2015 revenues reflects lower activity under the company’s existing contracts with National Institute of Allergy and Infectious Diseases (NIAID) for the development of anti-botulism agents.