XOMA Royalty Corporation has broadened its portfolio by acquiring Pulmokine Inc. for $20 million, securing an economic interest in seralutinib, a Phase 3 asset targeting pulmonary arterial hypertension (PAH). The move, announced on December 2, 2024, adds a promising late-stage asset to XOMA's royalty and milestone pipeline.
Seralutinib, a selective PDGFR (platelet-derived growth factor receptor) inhibitor, is currently being co-developed by Gossamer Bio, Inc., and Chiesi Farmaceutici S.p.A. A Phase 3 clinical trial is ongoing, with results anticipated in the fourth quarter of 2025. This positions seralutinib as a potential future revenue stream for XOMA Royalty, with the possibility of up to $25 million in milestone payments and a low to mid-single digit royalty on commercial sales.
Strategic Rationale
The acquisition aligns with XOMA Royalty's strategy of investing in therapeutic candidates with significant commercial potential. Brad Sitko, Chief Investment Officer of XOMA Royalty, stated that the acquisition of Pulmokine and seralutinib adds an asset with a strong mechanistic rationale in PAH to their growing portfolio. Sitko also noted the potential for seralutinib to address other cardio-respiratory conditions beyond PAH, suggesting broader applicability.
Terms of the Agreement
Under the terms of the agreement, XOMA Royalty paid $20 million in cash at closing for all outstanding shares of Pulmokine. Additional success-based payments contingent on future development and commercial events will be made to Pulmokine stockholders. XOMA Royalty's net royalties are projected to range from the low to mid-single digits on commercial sales, and the company will retain up to $25 million of the milestone payments.
About Seralutinib and PAH
Seralutinib is an investigational drug being developed for the treatment of pulmonary arterial hypertension (PAH), a progressive and life-threatening disease characterized by high blood pressure in the arteries of the lungs. Current treatments for PAH have limitations, and seralutinib offers a novel mechanism of action as a selective PDGFR inhibitor. The Phase 3 trial is designed to evaluate the efficacy and safety of seralutinib in patients with PAH.
XOMA Royalty's Portfolio Expansion
The acquisition of Pulmokine marks XOMA Royalty's second whole-company acquisition in 2024, reflecting its commitment to providing royalty capital solutions to access promising assets. With the addition of seralutinib, XOMA Royalty's portfolio now includes seven Phase 3 royalty assets, complementing its existing six commercial royalty assets, including VABYSMO, OJEMDA, MIPLYFFA, XACIATO, IXINITY, and DSUVIA.
