XOMA Royalty Expands Portfolio with Acquisition of Pulmokine
Seralutinib is now XOMA Royalty’s seventh Phase 3 royalty asset, enhancing its growing pipeline of late-stage developments.
This promising asset is being jointly developed by Gossamer Bio, Inc., and Chiesi Farmaceutici S.p.A. Currently, a Phase 3 study is underway for treating pulmonary arterial hypertension, with results expected by late 2025.
Through this acquisition, XOMA Royalty anticipates a possible total of $25 million in milestone payments, alongside earning a competitive low to mid-single digit royalty.
Recently, XOMA Royalty Corporation (NASDAQ: XOMA) made headlines by announcing its strategic acquisition of Pulmokine Inc., allowing it to participate in the economic potential of seralutinib, which is in the Phase 3 pipeline for pulmonary arterial hypertension (PAH). This acquisition significantly bolsters XOMA's portfolio of royalty interests.
Brad Sitko, Chief Investment Officer of XOMA Royalty, stated, "We acquired Pulmokine to add seralutinib to our expanding roster of royalty and milestone opportunities. We see strong potential for seralutinib to tackle various cardio-respiratory conditions in the future."
This acquisition represents the second company purchase made by XOMA in the current year, showcasing their commitment to innovative royalty capital solutions aimed at generating attractive returns while lending support to earlier-stage biotech companies.
Terms of the Acquisition
XOMA Royalty purchased all outstanding shares of Pulmokine for a cash payment of $20 million at closing. Furthermore, the acquisition includes performance-based considerations that will provide additional compensation to Pulmokine’s stockholders linked to successful developments and commercial launches. XOMA will be eligible to receive royalties ranging from low to mid-single digits based on commercial sales and retain milestone payments of up to $25 million.
XOMA Royalty's Role in Biotechnology
XOMA Royalty plays a significant role in the biotechnology field by aggregating royalties from diverse assets. By acquiring the future financial potential related to early-stage therapeutic candidates that are licensed out to larger pharmaceutical companies, XOMA fosters innovation in healthcare while offering sellers non-dilutive and non-recourse funding. This funding aids developers in advancing their therapeutic candidates for greater health impacts.
The company showcases a diverse and expanding asset portfolio, providing the necessary capital that innovative drug developers need, which contributes greatly to the advancement of health solutions globally.
XOMA Royalty encourages future engagement from potential investors and interested parties to learn more about their impact and capabilities in enhancing healthcare solutions.
The extensive portfolio includes VABYSMO, OJEMDA, MIPLYFFA, XACIATO, IXINITY, and DSUVIA. Each compound is at different stages of development, bolstering XOMA's role in advancing therapeutic innovations.
Frequently Asked Questions
What is seralutinib and what condition does it target?
Seralutinib is a Phase 3 asset being developed for pulmonary arterial hypertension (PAH), a serious condition affecting blood flow in the lungs.
How much did XOMA Royalty pay for Pulmokine?
XOMA Royalty acquired Pulmokine for $20 million in cash, in addition to potential milestone payments based on future successes.
What is the significance of XOMA's acquisition strategy?
XOMA's acquisition strategy aims to enhance its portfolio by integrating promising late-stage assets while providing strategic funding solutions to biotechnology companies.
Who developed seralutinib?
Seralutinib is being co-developed by Gossamer Bio, Inc., and Chiesi Farmaceutici S.p.A.
How can I get more information about XOMA Royalty?
For more information about XOMA Royalty and its portfolio, you can visit their official website or follow them on LinkedIn.
