Press Release: XOMA Royalty Reports Fourth Quarter and Full Year 2024 Financial Results and Highlights Business Achievements

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XOMA Royalty Reports Fourth Quarter and Full Year 2024 Financial Results and Highlights Business Achievements

Doubled the royalty and milestone portfolio to over 120 royalty assets with significant milestone potential through five transactions in 2024

Completed two whole company acquisitions to unlock shareholder value

Day One's OJEMDA$(TM)$ (tovorafenib) and Zevra's MIPLYFFA(TM) (arimoclomol) each received FDA approval

Cash receipts totaled $4.0 million in the fourth quarter and $46.3 million for the full year 2024

EMERYVILLE, Calif., March 17, 2025 (GLOBE NEWSWIRE) -- XOMA Royalty Corporation $(XOMA)$, the biotech royalty aggregator, reported its fourth quarter and full year 2024 financial results and highlighted recent activities.

"Our balanced approach to building the scale of XOMA Royalty's portfolio by selectively acquiring royalty economics across the lifecycle of drug development is beginning to bear fruit," stated Owen Hughes, Chief Executive Officer of XOMA Royalty. "Our growing commercial royalty portfolio of six assets is supported by VABYSMO$(R)$ (faricimab), OJEMDA(TM), and MIPLYFFA(TM), while our Phase 3 portfolio, which now totals 11 assets, promises several key readouts in 2025, including ersodetug from Rezolute, seralutinib from Gossamer Bio, and Ovaprene(R) (non-hormonal vaginal ring) from Daré Biosciences. With over $100 million in cash on hand and a clear path to sustainable cashflow from royalties alone, we are well-positioned to further our goal of driving value for patients and shareholders alike."

Royalty and Milestone Acquisitions

 
      Partner                       Asset and Transaction Detail 
--------------------  -------------------------------------------------------- 
Twist Bioscience      XOMA Royalty completed a $15 million royalty 
                      monetization agreement with Twist, acquiring 50% of the 
                      future milestones and royalties in 60-plus partnered 
                      early-stage programs across 30 companies enabled by 
                      Twist Bioscience's Biopharma Solutions business unit. 
--------------------  -------------------------------------------------------- 
Daré Bioscience  XOMA Royalty added economic interests to three best- or 
                      first-in-category assets to its portfolio for a $22 
                      million upfront payment. XACIATO(TM) vaginal gel 2% is 
                      commercially available and marketed by Organon. Bayer 
                      holds the U.S. rights to commercialize Ovaprene(R) , a 
                      hormone-free monthly intravaginal contraceptive, 
                      currently in Phase 3 clinical trials. XOMA Royalty also 
                      acquired a synthetic royalty in Sildenafil Cream, 3.6%, 
                      a Phase 3-ready asset for female sexual arousal 
                      disorder. 
Talphera, Inc.        XOMA Royalty acquired an economic interest in DSUVIA(R) 
                      (sufentanil sublingual tablet) from Talphera, Inc., for 
                      $8 million. XOMA Royalty is entitled to royalties from 
                      DSUVIA(R) sales. Alora Pharmaceuticals discontinued its 
                      DSUVIA(R) commercial activities in November 2024. We 
                      remain eligible for payments from sales to the U.S. 
                      Department of Defense. 
--------------------  -------------------------------------------------------- 
 
 

Company Acquisitions

 
Acquired Company                           Rationale 
-----------------  --------------------------------------------------------- 
Kinnate Biopharma  Kinnate stockholders received $2.5879 per share in 
                    cash plus a Contingent Value Right $(CVR)$ on April 
                    3, 2024. The acquisition added approximately $7.8 
                    million in cash and five assets to the XOMA Royalty 
                    portfolio. 
-----------------  --------------------------------------------------------- 
Pulmokine Inc.     XOMA Royalty secured a milestone and royalty interest 
                    in Gossamer Bio and Chiesi Farmaceutici's seralutinib 
                    held by Pulmokine, a private company. Seralutinib 
                    is a Phase 3 asset being studied in pulmonary arterial 
                    hypertension (PAH), and Gossamer expects to initiate 
                    a registrational Phase 3 study in pulmonary hypertension 
                    associated with interstitial lung disease (PH-ILD) 
                    in 2025(1) . Acquisition cost was $20 million upfront. 
-----------------  --------------------------------------------------------- 
 
 

Product Approvals

 
         Partner                                  Event 
--------------------------  -------------------------------------------------- 
Day One Biopharmaceuticals  The U.S. Food and Drug Administration (FDA) 
                            approved Day One's OJEMDA(TM) (tovorafenib) for 
                            use in patients with pediatric low-grade glioma 
                            (pLGG). XOMA Royalty earned a $9.0 million 
                            milestone upon the approval and recorded $2.7 
                            million in income resulting from OJEMDA(TM) sales 
                            in 2024. In addition, XOMA Royalty received an 
                            $8.1 million payment related to Day One's sale of 
                            its priority review voucher. 
--------------------------  -------------------------------------------------- 
Zevra Therapeutics          The FDA approved Zevra's MIPLYFFA(TM) 
                            (arimoclomol) capsules as an orally delivered 
                            treatment for Niemann-Pick disease type C (NPC). 
                            MIPLYFFA(TM) is indicated for use in combination 
                            with miglustat for the treatment of neurological 
                            manifestations of NPC in adult and pediatric 
                            patients 2 years of age and older. 
--------------------------  -------------------------------------------------- 
 
 

Out-licensing Activities

 
Partner                            Event 
-------  --------------------------------------------------------- 
Alexion  In December 2024, following its acquisition of Amolyt, 
          Alexion (an AstraZeneca company) exercised Amolyt's 
          option to continue developing anti-PTH1R monoclonal 
          antibodies that originated from XOMA's discovery efforts 
          as potential treatments for primary hyperparathyroidism 
          and humoral hypercalcemia of malignancy. XOMA Royalty 
          will be eligible to receive up to $10.5 million in 
          milestone payments and royalties ranging from low 
          single to low double-digits on net commercial sales. 
          Upon Alexion's exercise of the option, XOMA Royalty 
          earned a $0.5 million payment. 
-------  --------------------------------------------------------- 
Kinnate  In early 2025, XOMA Royalty secured license agreements 
          with several parties for the five unpartnered Kinnate 
          assets. Per the terms of the acquisition, a portion 
          of any upfront payments received by XOMA Royalty will 
          be distributed to the Kinnate CVR holders. 
-------  --------------------------------------------------------- 
 
 

Subsequent Events

 
      Partner                                  Event 
--------------------  -------------------------------------------------------- 
Rezolute              Received Breakthrough Therapy Designation from FDA 
                       for ersodetug (RZ358) for the treatment of hypoglycemia 
                       due to congenital hyperinsulinism (cHI)(2) . 
                       Announced the independent Data Monitoring Committee 
                       reviewed the safety data from eight infants ages 3 
                       months to 1 year enrolled in the open-label portion 
                       of the sunRIZE Phase 3 study of ersodetug for the 
                       treatment of hypoglycemia due to cHI. Their conclusion 
                       was the safety profile was such that infants may now 
                       be enrolled in the double-blind, placebo-controlled 
                       study(3) . 
--------------------  -------------------------------------------------------- 
Castle Creek          XOMA Royalty added a royalty interest in D-Fi (FCX-007), 
                      a Phase 3 asset being developed by Castle Creek 
                      Biosciences, to the portfolio. D-Fi is being studied in 
                      dystrophic epidermolysis bullosa (DEB), a rare 
                      progressive and debilitating skin disorder. D-Fi has 
                      been granted Orphan Drug Designation for the treatment 
                      of DEB, as well as Rare Pediatric Disease, Fast Track, 
                      and Regenerative Medicine Advanced Therapy designations 
                      by the FDA. XOMA Royalty contributed $5 million to 
                      Castle Creek Biosciences' $75 million syndicated royalty 
                      financing transaction. 
--------------------  -------------------------------------------------------- 
Affitech Research AS  XOMA Royalty paid $6 million in milestones to Affitech 
                      related to VABYSMO(R) (faricimab-svoa) achieving 
                      specific sales thresholds. This was the final payment 
                      due to Affitech. 
--------------------  -------------------------------------------------------- 
 
 

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March 17, 2025 16:30 ET (20:30 GMT)

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