XOMA Corporation (XOMA) Bundle
A Brief History of XOMA Corporation
Founding and Early Years
XOMA Corporation was founded in 1981 and has its headquarters in Berkeley, California. Initially focused on developing monoclonal antibodies, XOMA became a pioneer in the biotechnology industry.
Initial Public Offering
The company went public in 1986, trading on NASDAQ under the ticker symbol XOMA. The IPO raised approximately $20 million, which was used to fund research and development efforts.
Strategic Partnerships and Product Development
Throughout the 1990s and early 2000s, XOMA entered into various strategic partnerships with pharmaceutical giants, including Eli Lilly and Company and Novartis. These collaborations aimed at developing therapeutic antibodies and leveraging XOMA’s proprietary technology.
Financial Performance Overview
As of September 30, 2024, XOMA reported a cash balance of $142 million and an accumulated deficit of $1.2 billion. The net loss for the three months ended September 30, 2024, was $17.2 million, compared to a net loss of $5.5 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss stood at $9.9 million, compared to $20.7 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | $(17,243,000) | $(5,509,000) | $(9,853,000) | $(20,722,000) |
| Cash and Cash Equivalents | $142,050,000 | $153,290,000 | - | - |
| Accumulated Deficit | $(1,231,831,000) | $(1,223,223,000) | - | - |
Recent Developments and Acquisitions
In December 2023, XOMA entered into a loan agreement with Blue Owl, securing $130 million. As of September 30, 2024, the total carrying value of this loan was approximately $117.9 million after accounting for principal repayments and debt discounts.
Market Position and Future Outlook
XOMA continues to focus on its royalty aggregator business model, which has evolved through various royalty purchase agreements (RPAs). The company’s future income generation is dependent on the success of its partners and ongoing product sales.
Stock Performance
XOMA's stock performance has been volatile, reflecting the broader biotechnology sector trends. As of the end of September 2024, the company had approximately 11.7 million shares outstanding, with a net loss per share of $(1.59) for Q3 2024.
| Stock Information | Q3 2024 |
|---|---|
| Shares Outstanding | 11,712,000 |
| Net Loss per Share | $(1.59) |
Conclusion
XOMA Corporation has navigated significant challenges and opportunities since its inception. As it moves forward, the company's focus on strategic partnerships and innovative revenue models will be critical to its growth and sustainability.
A Who Owns XOMA Corporation (XOMA)
Major Shareholders
As of September 30, 2024, the following are the major shareholders of XOMA Corporation:
| Shareholder | Ownership Percentage | Type of Stock |
|---|---|---|
| BVF Partners L.P. | 30.9% | Common Stock |
| BVF Partners L.P. (if Series X Convertible Preferred Stock converted) | 51.5% | Common Stock (as converted) |
| Other Institutional Investors | Varies | Common Stock |
Current Stock Structure
The stock structure of XOMA Corporation as of September 30, 2024, is as follows:
| Share Class | Shares Issued | Shares Outstanding | Par Value |
|---|---|---|---|
| Common Stock | 11,755,223 | 11,755,223 | $0.0075 |
| Series A Preferred Stock | 984 | 984 | $49 |
| Series B Preferred Stock | 2 | 2 | $— |
Financial Overview
As of September 30, 2024, XOMA Corporation reported the following financial metrics:
| Metric | Amount |
|---|---|
| Accumulated Deficit | $(1,233,089,000) |
| Net Cash Used in Operating Activities (9 months) | $(10,845,000) |
| Total Stockholders’ Equity | $84,809,000 |
| Total Liabilities | $138,531,000 |
Dividends
During the nine months ended September 30, 2024, the company declared the following cash dividends:
| Dividend Type | Cash Dividend Declared ($ per share) | Dividend Payment Date |
|---|---|---|
| Series A Preferred Stock | $0.53906 | January 15, 2024 |
| Series B Depositary Share | $0.52344 | January 15, 2024 |
| Series A Preferred Stock | $0.53906 | April 15, 2024 |
| Series B Depositary Share | $0.52344 | April 15, 2024 |
| Series A Preferred Stock | $0.53906 | July 15, 2024 |
| Series B Depositary Share | $0.52344 | July 15, 2024 |
| Series A Preferred Stock | $0.53906 | October 15, 2024 |
| Series B Depositary Share | $0.52344 | October 15, 2024 |
Ownership and Related Party Transactions
Due to its significant equity ownership, BVF Partners L.P. is classified as a related party of XOMA Corporation. The Series A Preferred Stock owned by BVF is convertible upon specific events, which were not met as of September 30, 2024.
XOMA Corporation (XOMA) Mission Statement
Overview
XOMA Corporation, now known as XOMA Royalty Corporation, is a biotechnology company focused on acquiring and managing a portfolio of royalty and milestone payments related to therapeutic candidates. The company aims to enhance the development of innovative treatments through strategic partnerships.
Mission Statement
The mission of XOMA is to leverage its expertise in drug development and commercialization to maximize the value of its royalty and milestone portfolio while supporting the advancement of novel therapeutics that address significant unmet medical needs.
Financial Performance
As of September 30, 2024, XOMA reported a net loss of $17.2 million for the quarter and $9.9 million for the nine months. The total income and revenues for the three months ended September 30, 2024, were $7.2 million, compared to $830,000 for the same period in 2023. For the nine months ended September 30, 2024, total income and revenues increased to $19.8 million from $2.9 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Income and Revenues | $7.2 million | $830,000 | $19.8 million | $2.9 million |
| Net Loss | $(17.2 million) | $(5.5 million) | $(9.9 million) | $(20.7 million) |
| Net Loss per Share (Basic) | $(1.59) | $(0.60) | $(1.20) | $(2.17) |
| Weighted-Average Shares | 11.7 million | 11.5 million | 11.6 million | 11.5 million |
Strategic Partnerships and Agreements
XOMA's strategy includes entering into royalty purchase agreements and collaborations with various pharmaceutical companies to secure future income through milestone and royalty payments. Key agreements include:
- Royalty Purchase Agreement with Twist Bioscience for a $15 million upfront payment, with potential earnings of up to $0.5 billion in milestones.
- LadRx Agreements, involving various milestone payments and royalties, including a $1 million milestone payment in January 2024.
- Affitech Commercial Payment Purchase Agreement, which grants XOMA 0.5% of net sales of VABYSMO for ten years.
Cash Flow and Financial Position
As of September 30, 2024, XOMA had $142 million in cash and cash equivalents. The net cash used in operating activities for the nine months was $10.8 million, with cash provided by investing activities amounting to $8.2 million. The total liabilities were reported at $138.5 million.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(10.8 million) | $(14.2 million) |
| Net Cash Provided by Investing Activities | $8.2 million | $(6.2 million) |
| Total Liabilities | $138.5 million | $145.6 million |
Conclusion
XOMA continues to focus on its mission to optimize its portfolio through strategic partnerships, aiming to generate future cash flows from royalties and milestone payments while maintaining a strong financial position to support ongoing operations and growth.
How XOMA Corporation (XOMA) Works
Business Model
XOMA Corporation operates as a biotech royalty aggregator, focusing on acquiring rights to future milestone payments and royalty streams associated with commercial and pre-commercial therapeutic candidates. The company aims to generate revenue through a portfolio of economic rights obtained from partnered programs, particularly in early to mid-stage clinical assets with significant commercial potential.
Financial Performance (2024)
As of September 30, 2024, XOMA reported:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Income and Revenues | $7,197,000 | $830,000 | $19,773,000 | $2,925,000 |
| Net Loss | $(17,243,000) | $(5,509,000) | $(9,853,000) | $(20,722,000) |
| Operating Expenses | $22,837,000 | $6,617,000 | $52,496,000 | $24,839,000 |
| Net Cash Used in Operating Activities | $10,845,000 | $14,231,000 | $10,845,000 | $14,231,000 |
| Accumulated Deficit | $1,233,089,000 |
Revenue Breakdown
The revenue generated by XOMA includes income from purchased receivables, contracts with customers, and revenue recognized under the units-of-revenue method:
| Revenue Source | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Income from Purchased Receivables | $6,463,000 | $0 | $11,895,000 | $0 |
| Revenue from Contracts with Customers | $25,000 | $225,000 | $6,050,000 | $1,350,000 |
| Revenue Recognized Under Units-of-Revenue Method | $709,000 | $605,000 | $1,828,000 | $1,575,000 |
Operating Expenses
Operating expenses for XOMA include research and development, general and administrative expenses, and impairment costs related to royalty purchase agreements:
| Expense Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Research and Development | $817,000 | $25,000 | $2,011,000 | $118,000 |
| General and Administrative | $8,020,000 | $6,368,000 | $27,485,000 | $18,341,000 |
| Royalty Purchase Agreement Asset Impairment | $14,000,000 | $0 | $23,000,000 | $1,575,000 |
Capital Resources
As of September 30, 2024, XOMA maintained:
- Cash and Cash Equivalents: $142,000,000
- Restricted Cash: $4,800,000
- Total Liabilities: $138,531,000
- Total Stockholders’ Equity: $84,809,000
Debt Obligations
XOMA has significant debt obligations primarily associated with the Blue Owl Loan Agreement:
- Initial Term Loan Amount: $130,000,000
- Interest Rate: 9.875%
- Current Portion of Debt: $9,800,000
- Non-Current Portion of Debt: $108,100,000
Recent Agreements and Developments
Recent agreements impacting XOMA's operations include:
- Royalty Purchase Agreement with Twist Bioscience for $15,000,000 upfront payment.
- Milestone payment of $1,000,000 to LadRx in January 2024.
- Commercial Payment Purchase Agreement with Talphera, including an upfront payment of $8,000,000.
How XOMA Corporation (XOMA) Makes Money
Business Model Overview
XOMA Corporation operates primarily as a biotech royalty aggregator. The company focuses on acquiring rights to future milestone and royalty payments associated with partnered therapeutic candidates in various stages of clinical development. This model has been in place since 2017, and it emphasizes early to mid-stage clinical assets with significant commercial sales potential.
Revenue Streams
XOMA generates revenue through several key mechanisms:
- Purchased Receivables: XOMA earns income from purchased receivables, which includes royalties and milestone payments from partnered products.
- Contract Revenues: This includes upfront fees, annual license fees, and milestone payments from out-licensing agreements.
- Royalty Agreements: The company has multiple royalty agreements with various partners, providing it with ongoing revenue based on product sales.
Financial Performance
As of September 30, 2024, XOMA reported total income and revenues as follows:
| Income and Revenues | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change |
|---|---|---|---|---|---|---|
| Income from purchased receivables | $6,463,000 | $0 | $6,463,000 | $11,895,000 | $0 | $11,895,000 |
| Revenue from contracts with customers | $25,000 | $225,000 | ($200,000) | $6,050,000 | $1,350,000 | $4,700,000 |
| Revenue recognized under units-of-revenue method | $709,000 | $605,000 | $104,000 | $1,828,000 | $1,575,000 | $253,000 |
| Total income and revenues | $7,197,000 | $830,000 | $6,367,000 | $19,773,000 | $2,925,000 | $16,848,000 |
Key Agreements and Milestones
XOMA has entered into various agreements that contribute to its revenue:
- Twist Bioscience Agreement: Acquired 50% of certain contingent payments related to over 60 early-stage programs for an upfront payment of $15 million, with potential future milestone payments up to $500 million.
- LadRx Agreements: Potential royalties and milestone payments, including a $1 million milestone payment made in January 2024.
- Affitech Agreement: Eligible to receive 0.5% of net sales of VABYSMO for ten years post-commercialization.
- Daré Royalty Purchase Agreements: Paid $22 million for rights to royalties and milestones associated with specific products, with royalties ranging from low to high single digits.
Financial Results Summary
For the three and nine months ended September 30, 2024, XOMA reported:
| Operating Expenses | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change |
|---|---|---|---|---|---|---|
| Research and development | $817,000 | $25,000 | $792,000 | $2,011,000 | $118,000 | $1,893,000 |
| General and administrative | $8,020,000 | $6,368,000 | $1,652,000 | $27,485,000 | $18,341,000 | $9,144,000 |
| Royalty purchase agreement asset impairment | $14,000,000 | $0 | $14,000,000 | $23,000,000 | $1,575,000 | $21,425,000 |
| Total operating expenses | $22,837,000 | $6,617,000 | $16,220,000 | $52,496,000 | $24,839,000 | $27,657,000 |
Net Loss
For the three months ended September 30, 2024, XOMA reported a net loss of $17.2 million, compared to a net loss of $5.5 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $9.9 million, compared to a net loss of $20.7 million for the same period in 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, XOMA reported net cash used in operating activities of $10.8 million, a decrease from $14.2 million in the same period of 2023. The total cash, cash equivalents, and restricted cash as of September 30, 2024, were $146.8 million.
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Resources:
- XOMA Corporation (XOMA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of XOMA Corporation (XOMA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View XOMA Corporation (XOMA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.