Welcome to our dedicated page for XOMA Royalty Corporation news (Ticker: XOMA), a resource for investors and traders seeking the latest updates and insights on XOMA Royalty Corporation stock.
About XOMA Royalty Corporation
XOMA Royalty Corporation (NASDAQ: XOMA) is a biotechnology royalty aggregator that plays a pivotal role in advancing the development of innovative therapeutic solutions. The company specializes in acquiring the potential future economics associated with pre-commercial and commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. By doing so, XOMA provides non-dilutive, non-recourse funding to biotech firms, enabling them to accelerate the development of their internal drug pipelines or meet other corporate objectives.
Business Model and Operations
XOMA's business model is centered around acquiring royalty and milestone rights from therapeutic assets across all stages of development. These assets span a wide range of therapeutic areas, including oncology, rare diseases, women's health, and cardio-respiratory conditions. By focusing on royalty aggregation rather than direct drug development, XOMA minimizes operational risks while maximizing potential financial returns. The company’s portfolio includes rights to commercial products such as VABYSMO®, OJEMDA™, MIPLYFFA™, and DSUVIA®, as well as a pipeline of investigational compounds with significant market potential.
Industry Significance
Operating at the intersection of biotechnology and finance, XOMA serves as a critical enabler for biotech innovation. Its royalty aggregation model provides biotech companies with the financial flexibility to advance groundbreaking therapies without the burden of equity dilution or traditional debt. This unique approach not only supports the development of life-saving treatments but also allows XOMA to build a diversified portfolio of assets that generate sustainable cash flows over time.
Portfolio and Market Position
XOMA boasts an extensive and growing portfolio of over 70 assets, including both commercial and investigational therapies. The company's portfolio strategy emphasizes diversification across therapeutic areas and stages of development, thereby mitigating risks associated with the inherently unpredictable nature of drug development. Recent acquisitions, such as economic interests in seralutinib for pulmonary arterial hypertension and XACIATO™ for bacterial vaginosis, highlight XOMA's commitment to expanding its asset base while addressing unmet medical needs.
Competitive Differentiation
XOMA differentiates itself through its expertise in asset valuation, strategic capital deployment, and risk diversification. Unlike traditional biotech firms that focus on drug development, XOMA’s royalty aggregation model allows it to benefit from the success of multiple therapeutic candidates without bearing the direct costs and risks of R&D. This positions XOMA as a trusted financial partner for biotech companies and a unique investment opportunity within the biotech sector.
Challenges and Risk Management
While XOMA's business model reduces operational risks, it is not without challenges. The company’s revenue streams depend on the successful development, regulatory approval, and market adoption of its partnered assets. To mitigate these risks, XOMA employs a disciplined approach to asset selection, focusing on therapies with strong clinical and commercial potential. Its diversified portfolio further helps to balance the inherent uncertainties of the biotech industry.
Conclusion
In summary, XOMA Royalty Corporation represents a unique and innovative approach to supporting biotech innovation. By acquiring royalty and milestone rights, the company enables the development of life-saving therapies while building a diversified and sustainable revenue model. With its extensive portfolio, strategic focus, and financial expertise, XOMA continues to play a crucial role in advancing human health and shaping the future of biotechnology.
XOMA (Nasdaq: XOMA) has announced that its Board of Directors has approved quarterly cash dividends for holders of its Series A and Series B Cumulative Preferred Stock.
Holders of the 8.625% Series A Cumulative Perpetual Preferred Stock (Nasdaq: XOMAP) will receive a dividend of $0.53906 per share. Holders of depositary shares representing 1/1000 of a share of the 8.375% Series B Cumulative Perpetual Preferred Stock (Nasdaq: XOMAO) will get a dividend of $0.52344 per depositary share.
These dividends are scheduled to be paid on or about July 15, 2024, to shareholders of record as of July 3, 2024.
XOMA (NASDAQ: XOMA) announced an $8.1 million milestone payment from Viracta Therapeutics. This is linked to Day One Biopharmaceuticals' sale of its Priority Review Voucher (PRV) for $108 million. OJEMDA™, the only approved therapy for relapsed or refractory BRAF-altered pediatric low-grade glioma (pLGG), has contributed to this milestone. XOMA's CEO, Owen Hughes, highlighted that the milestone has more than covered their initial $13.5 million investment made in March 2021. They expect future royalties from OJEMDA™ to enhance their royalty portfolio and generate sustainable cash flow.
LadRx (OTCQB: LADX) and ImmunityBio have agreed to mutually terminate the aldoxorubicin license, returning control of the drug to LadRx. This move follows LadRx's 2023 transfer of royalty and milestone rights of aldoxorubicin to XOMA for $5 million upfront, potentially up to $7 million more in milestones. XOMA has consented to the termination and will receive a low-single-digit synthetic royalty on aldoxorubicin and a mid-single-digit percentage from future out-license agreements. Aldoxorubicin, part of LadRx's LADR-based drug program, has shown promise in clinical trials with lower cardiotoxicity compared to doxorubicin. LadRx plans to review aldoxorubicin's data for further clinical development and expects to file an IND for another drug, LADR-7, by late 2024.
XOMA , a biotech royalty aggregator listed on NASDAQ under the symbol 'XOMA', announced its participation in the H.C. Wainwright 2nd Annual Bioconnect Investor Conference. The event will take place at NASDAQ in New York on May 20, 2024.
CEO Owen Hughes and CIO Brad Sitko will represent XOMA in a fireside chat scheduled for 11:00 AM ET. The presentation can be accessed online via a provided link, and replays will be available on XOMA's investor relations website for 90 days post-event.
XOMA reported its first quarter 2024 financial results, earning a $9 million milestone with the FDA approval of OJEMDA™, gaining $9.5 million from Kinnate acquisition, expanding its portfolio, and initiating a $50 million stock repurchase program. The company also reported $1.5 million in total revenues for Q1 2024.
XOMA has acquired an economic interest in three women's health assets from Daré Bioscience, Inc., for $22 million upfront. The assets include XACIATO™ (clindamycin phosphate) vaginal gel, Ovaprene®, and Sildenafil Cream. XACIATO™ is FDA-approved for treating bacterial vaginosis, with commercial activities initiated by Organon in 2023. XOMA aims to create additional value for shareholders with these acquisitions.
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