XOMA Royalty Finalizes Asset Sale, Unlocks Future Growth Potential
XOMA Royalty Completes Strategic Asset Sale
XOMA Royalty has successfully sold its remaining Kinnate pipeline assets, which could amount to $270 million through upfront and milestone payments, along with commercial sales royalties.
Those holding Kinnate Contingent Value Rights (CVRs) will receive a substantial share of these future earnings, amounting to 85% of the payments made to XOMA Royalty until the year 2029.
Details of the Transaction
Based in Emeryville, XOMA Royalty Corporation (NASDAQ: XOMA) announced the thorough completion of its asset transaction involving all five pipeline assets acquired through the purchase of Kinnate Biopharma Inc. This process concluded when XOMA finalized the acquisition.
As stipulated in the asset agreements, the company stands to receive payments potentially reaching up to $270 million, combined with royalties that vary from low single digits to mid-teens on the associated commercial sales of these assets.
CEO Insights on the Sale
CEO Owen Hughes shared his enthusiasm regarding the deal, emphasizing that in addition to the distribution of Kinnate’s cash reserves to its shareholders, this transaction opens avenues for growth by divesting Kinnate’s pipeline products. The agreement enables former Kinnate shareholders to benefit from 85% of the payments received before 2029.
Understanding XOMA Royalty Corporation
XOMA Royalty operates as a unique entity in the biotech sector that accumulates royalty streams from drugs that are in pre-commercial and commercial stages. By purchasing the financial interests linked with these therapeutic candidates, XOMA provides essential funding for research and development, allowing companies to push forward with their drug candidates without diluting their equity.
The company continually builds a diverse and expanding portfolio of assets. Each asset represents rights to future revenues from drugs that are currently in development, showcasing XOMA’s innovative approach to strengthening biotech companies while enhancing human health.
Portfolio Overview
As of now, XOMA’s milestone and royalty portfolio includes several promising assets: VABYSMO (faricimab-svoa), OJEMDA (tovorafenib), MIPLYFFA (arimoclomol), XACIATO (clindamycin phosphate) vaginal gel, IXINITY (coagulation factor IX), and DSUVIA (sufentanil sublingual tablet). While these assets hold great potential, it's crucial to acknowledge that they are still under investigation, and their safety and efficacy have not yet been fully established.
Investor and Media Relations
The transparent sharing of information remains vital for XOMA Royalty, so engagements with investors and the media are strongly encouraged. Investors can direct inquiries to Juliane Snowden and Media contact is Kathy Vincent. Their contact details establish a direct line for discussions surrounding the company’s strategies and future endeavors.
Investor Contact:
Juliane Snowden, XOMA Royalty Corporation
Phone: +1-646-438-9754
Email: juliane.snowden@xoma.com
Media Contact:
Kathy Vincent, KV Consulting & Management
Email: kathy@kathyvincent.com
Frequently Asked Questions
What assets did XOMA Royalty sell?
XOMA Royalty sold all five pipeline assets from Kinnate Biopharma Inc., which could yield significant payments and royalties.
What payments can Kinnate CVR holders expect?
Kinnate CVR holders are entitled to receive 85% of payments made to XOMA Royalty from the asset sale until April 2029.
How does XOMA benefit from the sale?
The sale could generate up to $270 million in upfront and milestone payments, along with future royalties on sales of the pipeline drugs.
What is the role of XOMA in the biotech space?
XOMA Royalty acts as a royalty aggregator, acquiring rights to future revenues from biotech companies, which helps them fund their R&D without diluting equity.
Where can I find more information about XOMA Royalty?
More information is available at the company’s website, where details on their portfolio and operations are shared.
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