XOMA Royalty Reports Q3 2024 Financial Results, Highlights Portfolio Expansion
Key Insights
XOMA Royalty (search)'s portfolio expanded with FDA approval of Zevra's MIPLYFFA™ (arimoclomol) for Niemann-Pick disease Type C (search), marking its sixth commercial asset.
The company acquired a 50% economic interest in Twist Bioscience (search)’s portfolio of over 60 licensed early-stage assets, diversifying its early-stage investments.
XOMA Royalty (search) reported cash receipts of $9.9 million for Q3 2024 and $42.3 million for the first nine months, demonstrating strong financial performance.
XOMA Royalty (search) Corporation (NASDAQ: XOMA) announced its third-quarter 2024 financial results, showcasing portfolio growth and strategic acquisitions. The company reported total income and revenues of $7.2 million for the quarter, including $6.5 million from two commercial products.
Portfolio Expansion and Key Developments
A significant highlight was the FDA approval of Zevra Therapeutics' MIPLYFFA™ (arimoclomol) for Niemann-Pick disease Type C (search) (NPC). MIPLYFFA™, indicated for use with miglustat in patients aged 2 years and older, is the sixth commercial asset in XOMA Royalty (search)’s portfolio. This approval marks a crucial advancement in treating the neurological manifestations of NPC, a rare and progressive genetic disorder.
XOMA Royalty (search) also expanded its early-stage portfolio by acquiring a 50% economic interest in Twist Bioscience (search)’s portfolio, encompassing over 60 partnered early-stage programs across approximately 30 companies. This move aligns with XOMA's strategy to diversify risk and build a sustainable cash flow stream.
Owen Hughes, Chief Executive Officer of XOMA Royalty (search), stated, “We continue to take a balanced approach to building a portfolio of sustainable cashflow streams by selectively acquiring royalty economics across the lifecycle of drug development. The September approval of MIPLYFFA™, the first therapy approved for patients living with Niemann-Pick disease Type C (search), adds to our growing commercial royalty portfolio, while the recent transaction with Twist Bioscience (search) further expands our early-stage portfolio, a key focus for us as we look to distribute risk across a diversified portfolio.”
Financial Performance
For the third quarter of 2024, XOMA Royalty (search) reported total income and revenues of $7.2 million, compared to $0.8 million in the same period of 2023. Research and development (R&D) expenses were $0.8 million, primarily due to clinical trial costs related to KIN-3248 from the Kinnate acquisition. General and administrative (G&A) expenses totaled $8.0 million, up from $6.4 million in Q3 2023, mainly due to costs incurred post-Kinnate acquisition.
However, the company recorded a one-time, non-cash impairment charge of $14.0 million related to the Agenus Royalty Purchase Agreement, impacting the net loss for the quarter, which stood at $17.2 million compared to a net loss of $5.5 million in Q3 2023.
As of September 30, 2024, XOMA Royalty (search) held $146.8 million in cash and cash equivalents. The company received $9.9 million in cash from royalty and commercial payments during the quarter, while net cash used in operating activities was $8.6 million.
Other Partner Activities
Rezolute announced that its sunRIZE Phase 3 clinical trial for ersodetug (RZ358) in congenital hyperinsulinism (search) (CHI) will begin enrolling patients in the U.S. in early 2025. Rezolute also received FDA clearance to initiate a Phase 3 registrational study for ersodetug in tumor hyperinsulinism.
Johnson & Johnson presented neoadjuvant TAR-200 plus cetrelimab Phase 2 data in muscle-invasive bladder cancer (search) (MIBC) patients at the European Society of Medical Oncology 2024 Congress. However, one of two Phase 3 trials involving cetrelimab in MIBC was discontinued due to not showing superiority to chemoradiation in an interim analysis.