XOMA Receives $8.1 Million Milestone Related to Day One Biopharmaceuticals’ Sale of its Priority Review Voucher
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.
- XOMA received an $8.1 million milestone payment, boosting financials.
- Day One Biopharmaceuticals sold a PRV for $108 million, indirectly benefiting XOMA.
- OJEMDA™ is the only approved therapy for a specific pediatric glioma, highlighting market potential.
- The milestone covers XOMA's initial $13.5 million investment, securing financial stability.
- Future royalties from OJEMDA™ are anticipated, promising ongoing revenue streams.
- The $8.1 million milestone is a one-time payment, not guaranteeing sustained income.
- XOMA's reliance on milestone payments and royalties could pose a financial risk.
Insights
The $8.1 million milestone payment received by XOMA Corporation is a noteworthy financial event. This payment, stemming from the sale of Day One Biopharmaceuticals' Priority Review Voucher (PRV) for $108 million, signifies an important return on XOMA's initial investment. In 2021, XOMA committed $13.5 million towards potential milestones and royalties related to OJEMDA™ and vosaroxin. The receipt of this milestone payment means that XOMA has now recouped a substantial portion of this outlay.
From a financial perspective, this milestone payment enhances XOMA's cash flow and reinforces its business model focused on royalty aggregation. By securing this milestone, XOMA is not only improving its current liquidity but also setting the stage for future royalty income streams from OJEMDA™.
Short-term implications: This immediate influx of $8.1 million improves XOMA's cash position, potentially providing more liquidity for operational needs or future investments.
Long-term implications: The milestone reduces investment risk and increases the probability of future royalty income, promoting sustained cash flow generation.
Retail investors should note that milestone payments like this one provide a clear sign of the financial health and strategic success of the company’s investment in biopharmaceutical assets.
OJEMDA™ (tovorafenib) is a treatment for pediatric low-grade glioma driven by BRAF fusions, a condition with limited therapeutic options. The acknowledgment of this drug's significance through an approved therapy and milestone payments indicates positive progress in the clinical landscape.
Clinical progress: With OJEMDA™ receiving approval, it highlights the therapeutic's clinical efficacy and regulatory success. This approval is not only a benchmark for the specific therapy but also a broad affirmation of the research and development processes employed by XOMA and its partners.
Industry impact: The payment underscores the value of strategic partnerships and investments in innovative therapies. It reassures stakeholders about the potential for continued advancements and financial returns in the biotech domain.
Investors should understand that the market approval and subsequent milestone payments reflect a successful culmination of the drug development process, enhancing XOMA's credibility and prospects in future biotech investments.
EMERYVILLE, Calif., June 12, 2024 (GLOBE NEWSWIRE) -- XOMA Corporation (NASDAQ: XOMA), the biotech royalty aggregator, announced today it has received an
“OJEMDA™ offers patients six months of age and older who have relapsed or refractory BRAF-altered pediatric low-grade glioma (pLGG) the only approved therapy studied in and approved specifically for pLGG driven by BRAF fusions,” stated Owen Hughes, Chief Executive Officer of XOMA. “With this milestone in hand, we have more than recouped our initial capital outlay. And importantly, we anticipate future royalties on OJEMDA™ will contribute to a growing portfolio of royalty receipts that will help us drive sustainable free cash flow generation over time.”
In March 2021, XOMA paid
About XOMA Corporation
XOMA is a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. XOMA acquires the potential future economics associated with pre-commercial and commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. When XOMA acquires the future economics, the seller receives non-dilutive, non-recourse funding they can use to advance their internal drug candidate(s) or for general corporate purposes. The Company has an extensive and growing portfolio of assets (asset defined as the right to receive potential future economics associated with the advancement of an underlying therapeutic candidate). For more information about the Company and its portfolio, please visit www.xoma.com or follow the Company on LinkedIn.
Forward-Looking Statements/Explanatory Notes
Certain statements contained in this press release are 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, including statements regarding the timing and amount of potential commercial payments to XOMA and other developments related to OJEMDA™ (tovorafenib). In some cases, you can identify such forward-looking statements by terminology such as “expect,” “may,” “will”, or “could,” the negative of these terms or similar expressions. These forward-looking statements are not a guarantee of XOMA’s performance, and you should not place undue reliance on such statements. 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, including those related to the fact that our product candidates subject to out-license agreements are still being developed, and our licensees may require substantial funds to continue development which may not be available; we do not know whether there will be, or will continue to be, a viable market for the products in which we have an ownership or royalty interest; and if the therapeutic product candidates to which we have a royalty interest do not receive regulatory approval, our third-party licensees will not be able to market them. Other potential risks to XOMA meeting these expectations are described in more detail in XOMA's most recent filing on Form 10-K and in other filings with the Securities and Exchange Commission. Consider such risks carefully when considering XOMA's prospects. Any forward-looking statement in this press release represents XOMA's beliefs and assumptions 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 applicable law.
EXPLANATORY NOTE: Any references to “portfolio” in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development. Any references to “assets” in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.
As of the date of this press release, the commercial assets in XOMA’s milestone and royalty portfolio are VABYSMO® (faricimab-svoa), OJEMDA™ (tovorafenib), XACIATO™ (clindamycin phosphate) vaginal gel
XOMA Investor Contact XOMA Media Contact
Juliane Snowden Kathy Vincent
XOMA Corporation KV Consulting & Management
+1 646-438-9754 +1 310-403-8951
juliane.snowden@xoma.com kathy@kathyvincent.com
FAQ
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