XOMA Reports Second Quarter 2022 Financial Results and Highlights Recent Operational Events
XOMA Corporation reported its second quarter 2022 financial results, achieving total revenues of $1.0 million, up from $0.9 million in Q2 2021. The net loss widened to $4.7 million compared to $2.2 million in the prior year. Cash at the end of June stood at $83.2 million, with no debt, which management believes will sustain operations for several years. The acquisition of Checkmate Pharmaceuticals resulted in a $2.5 million payment to XOMA, while Rezolute and Day One plan to advance to Phase 3 clinical trials, signaling positive progress in their pipelines.
- Total revenues increased to $1.0 million in Q2 2022, compared to $0.9 million in Q2 2021.
- Cash reserves remain strong at $83.2 million, with no debt on the balance sheet.
- Positive advancement with Rezolute and Day One moving to Phase 3 programs.
- Net loss increased to $4.7 million in Q2 2022, compared to $2.2 million in Q2 2021.
- General and administrative expenses rose by $1.8 million, primarily due to increased consulting and personnel costs.
The completion of Regeneron’s acquisition of Checkmate Pharmaceuticals resulted in a
Data from Rezolute and Day One led both companies to announce plans to move their assets into Phase 3 programs.
Ended the second quarter of 2022 with cash of
EMERYVILLE, Calif., Aug. 04, 2022 (GLOBE NEWSWIRE) -- XOMA Corporation (Nasdaq: XOMA), a biotech royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of advancing novel therapeutic candidates aimed at improving human health, reported its second quarter 2022 financial results and provided a recent operations update.
“The assets in our royalty and milestone portfolio made significant progress in the first half of 2022. In the second quarter, Rezolute presented the results from its Phase 2b RIZE clinical study of RZ358 in patients with congenital hyperinsulinism (CHI) at the Pediatric Endocrine Society’s 2022 Annual Meeting. The study results exceeded expectations leading Rezolute to announce its intention to launch a Phase 3 program1. Day One presented initial data from the Pivotal FIREFLY-1 trial of tovorafenib (DAY101) in patients with pediatric low-grade glioma. In its presentations, Day One’s management articulated its Phase 3 clinical trial plan, which is expected to begin in the third quarter of 20222. Both companies raised capital on their respective data to fund the Phase 3 programs3. We look forward to further public announcements from both Rezolute and Day One as children with CHI or low-grade glioma need access to new therapeutic options,” stated Jim Neal, Chairman and Chief Executive Officer of XOMA.
“We have had a recent addition to our early clinical-stage assets as Sonnet BioTherapeutics launched Phase 1 development activities for SON-1010, which resulted in our earning a milestone payment. We congratulate all of our partners for their recent successes.”
Financial Results
XOMA recorded total revenues of
Research and development (“R&D”) expenses were
General and administrative (“G&A”) expenses were
In the second quarter of 2022, G&A expenses included
Other income, net was
Net loss for the second quarter of 2022 was
On June 30, 2022, XOMA had cash of
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 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 with more than 70 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.
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 faricimab, the potential of XOMA’s portfolio of partnered programs and licensed technologies generating substantial milestone and royalty proceeds over time, and XOMA’s cash sufficiency forecast. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will”, “would,” “could” or “should,” 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; 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; and the impact to the global economy as a result of the COVID-19 pandemic. 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, all assets in XOMA’s milestone and royalty portfolio, except faricimab, are investigational compounds. Efficacy and safety have not been established. T here is no guarantee that any of the investigational compounds will become commercially available.
| XOMA CORPORATION | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||
| (unaudited) | |||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenues: | |||||||||||||||
| Revenue from contracts with customers | $ | 525 | $ | 525 | $ | 3,275 | $ | 544 | |||||||
| Revenue recognized under units-of-revenue method | 458 | 376 | 815 | 731 | |||||||||||
| Total revenues | 983 | 901 | 4,090 | 1,275 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 40 | 38 | 96 | 99 | |||||||||||
| General and administrative | 5,710 | 3,927 | 10,826 | 10,667 | |||||||||||
| Total operating expenses | 5,750 | 3,965 | 10,922 | 10,766 | |||||||||||
| Loss from operations | (4,767 | ) | (3,064 | ) | (6,832 | ) | (9,491 | ) | |||||||
| Other income (expense), net: | |||||||||||||||
| Interest expense | - | (172 | ) | - | (461 | ) | |||||||||
| Loss on extinguishment of debt | - | (300 | ) | - | (300 | ) | |||||||||
| Other income (expense), net | 97 | 1,299 | (118 | ) | 642 | ||||||||||
| Net loss and comprehensive loss | $ | (4,670 | ) | $ | (2,237 | ) | $ | (6,950 | ) | $ | (9,610 | ) | |||
| Less: accumulated dividends on Series A and Series B preferred stock | (1,368 | ) | (1,293 | ) | (2,736 | ) | (1,824 | ) | |||||||
| Net loss available to common stockholders, basic and diluted | $ | (6,038 | ) | $ | (3,530 | ) | $ | (9,686 | ) | $ | (11,434 | ) | |||
| Basic and diluted net loss per share available to common stockholders | $ | (0.53 | ) | $ | (0.31 | ) | $ | (0.85 | ) | $ | (1.02 | ) | |||
| Weighted average shares used in computing basic and diluted net loss per share available to common stockholders | 11,421 | 11,285 | 11,376 | 11,263 | |||||||||||
| XOMA CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 83,182 | $ | 93,328 | ||||
| Restricted cash | - | 2,049 | ||||||
| Short-term equity securities | 523 | 774 | ||||||
| Trade and other receivables, net | 5 | 209 | ||||||
| Short-term royalty and commercial payment receivables | 2,500 | - | ||||||
| Prepaid expenses and other current assets | 1,051 | 613 | ||||||
| Total current assets | 87,261 | 96,973 | ||||||
| Property and equipment, net | 10 | 13 | ||||||
| Operating lease right-of-use assets | 116 | 200 | ||||||
| Long-term royalty and commercial payment receivables | 66,575 | 69,075 | ||||||
| Other assets - long term | 260 | 301 | ||||||
| Total assets | $ | 154,222 | $ | 166,562 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,153 | $ | 1,072 | ||||
| Accrued and other liabilities | 1,026 | 525 | ||||||
| Income taxes payable | - | 91 | ||||||
| Contingent consideration under royalty purchase agreements and commercial purchase payment agreements | 3,075 | 8,075 | ||||||
| Operating lease liabilities | 133 | 195 | ||||||
| Unearned revenue recognized under units-of-revenue method | 1,669 | 1,641 | ||||||
| Preferred stock dividend accrual | 1,368 | 1,368 | ||||||
| Total current liabilities | 8,424 | 12,967 | ||||||
| Unearned revenue recognized under units-of-revenue method – long-term | 10,842 | 11,685 | ||||||
| Long-term operating lease liabilities | - | 34 | ||||||
| Total liabilities | 19,266 | 24,686 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred Stock, | ||||||||
| 49 | 49 | |||||||
| — | — | |||||||
| Convertible preferred stock, 5,003 issued and outstanding at June 30, 2022 and December 31, 2021 | — | — | ||||||
| Common stock, | 86 | 85 | ||||||
| Additional paid-in capital | 1,307,059 | 1,307,030 | ||||||
| Accumulated deficit | (1,172,238 | ) | (1,165,288 | ) | ||||
| Total stockholders’ equity | 134,956 | 141,876 | ||||||
| Total liabilities and stockholders’ equity | $ | 154,222 | $ | 166,562 | ||||
| Investor contact: | Media contact: |
| Juliane Snowden | Kathy Vincent |
| XOMA | KV Consulting & Management |
| +1-646-438-9754 | +1-310-403-8951 |
| juliane.snowden@xoma.com | kathy@kathyvincent.com |
1 https://ir.rezolutebio.com/news-events/press-releases/detail/299/rezolute-announces-positive-data-from-its-phase-2b-rize
2 https://ir.dayonebio.com/news-releases/news-release-details/day-one-announces-positive-initial-data-pivotal-firefly-1-trial
3 XOMA holds economic interests in RZ358 and tovorafenib (DAY101). Should RZ358 receive marketing approval, XOMA is entitled to a high single- to mid teen-digit royalty on global commercial sales. Should tovorafenib receive marketing approval, XOMA is entitled to a mid single-digit royalty on global commercial sales.
FAQ
What were XOMA's total revenues in Q2 2022?
What was XOMA's net loss in the second quarter of 2022?
How much cash did XOMA have at the end of June 2022?
What milestone payment did XOMA receive from Checkmate Pharmaceuticals?
What are the upcoming clinical plans for Rezolute and Day One?
