EMERYVILLE, Calif. - XOMA Corporation (NASDAQ:XOMA), a biotech royalty aggregator, has announced the receipt of an $8.1 million milestone payment. This payment comes from Viracta Therapeutics, Inc. and is linked to the sale of a Priority Review Voucher by Day One Biopharmaceuticals™ for $108 million to an undisclosed buyer.
The milestone is part of a deal where XOMA initially invested $13.5 million in March 2021 to secure up to $54 million in potential milestones plus mid-single digit royalties on OJEMDA™ (tovorafenib). OJEMDA™ is the sole approved therapy for patients over six months old with relapsed or refractory BRAF-altered pediatric low-grade glioma (pLGG), a specific type of brain tumor.
Owen Hughes, CEO of XOMA, stated that with this milestone, the company has more than recovered its initial capital outlay. Looking ahead, Hughes anticipates that future royalties from OJEMDA™ will bolster the company's portfolio of royalty receipts, contributing to sustainable free cash flow over time.
XOMA plays a unique role in the biotech industry by acquiring future economic rights associated with therapeutic candidates that have been licensed to other pharmaceutical or biotechnology companies. This strategy allows the company to generate non-dilutive, non-recourse funding, which can be used to advance internal drug candidates or for general corporate purposes.
The company has a growing portfolio of assets, which includes rights to receive future economics from the progress of underlying therapeutic candidates. The commercial assets currently in XOMA’s milestone and royalty portfolio include products like VABYSMO®, XACIATO™, IXINITY®, and DSUVIA®. However, the majority of the assets are investigational compounds, and there is no assurance that they will become commercially available.
The information in this article is based on a press release statement from XOMA Corporation.
In other recent news, XOMA Corporation, a biotech royalty aggregator, has secured a $9 million milestone payment after the U.S. Food and Drug Administration approved Day One Biopharmaceuticals' New Drug Application for OJEMDA™ (tovorafenib).
This drug is now the first and only FDA-approved type II RAF inhibitor for patients six months and older with relapsed or refractory pediatric low-grade glioma. The milestone is part of a larger agreement in which XOMA acquired the rights to future milestone payments and royalties associated with tovorafenib, along with other potential economic benefits.
The FDA approval of OJEMDA™ is a crucial step for XOMA, demonstrating the potential of the company's partnered programs to generate substantial milestone and royalty proceeds over time. However, it's important to note that the product candidates in XOMA's portfolio are still in development, and their commercial success is subject to regulatory approvals and market viability.
These are recent developments in the company's operations.
InvestingPro Insights
XOMA Corporation's recent receipt of an $8.1 million milestone payment is a testament to the company's strategic approach in the biotech industry. As they continue to secure future economic rights from licensed therapeutic candidates, it's essential to look at the financial metrics that could impact their growth trajectory and investment potential.
According to InvestingPro data, XOMA has experienced a significant revenue growth of 73.1% in the last twelve months as of Q1 2024, indicating a strong upward trend in their financial performance. This is further highlighted by a staggering quarterly revenue growth of 240.96% for Q1 2024. Moreover, the company's market capitalization stands at $279.33 million, reflecting investor confidence in its business model and future prospects.
However, the InvestingPro Tips suggest a mixed financial outlook. While analysts are optimistic about sales growth in the current year, they do not expect the company to be profitable this year. Additionally, XOMA's trading at a high revenue valuation multiple and has not been profitable over the last twelve months. On the positive side, the company's liquid assets exceed short-term obligations, and it operates with a moderate level of debt, providing some financial stability.
Investors interested in a deeper dive into XOMA's financial health and future prospects can find additional InvestingPro Tips at Investing.com/pro/XOMA. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 7 additional tips listed in InvestingPro, subscribers can gain more comprehensive insights into XOMA's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.