XOMA(XOMA) - 2025 Q1 - Quarterly Results

Report Overview and Business Highlights First Quarter 2025 Highlights XOMA Royalty reported significant Q1 2025 pipeline advancements, including MAA submission for tovorafenib and Phase 3 initiation, alongside $18.0 million in cash receipts - Key pipeline advancements include EMA acceptance of the MAA for tovorafenib and Takeda's initiation of a Phase 3 trial for mezagitamab[2] - The company acquired an economic interest in Castle Creek's D-Fi (FCX-007) and divested all unpartnered assets from the Kinnate acquisition[2] Q1 2025 Cash Receipts | Category | Amount | | :--- | :--- | | Total Cash Receipts | $18.0 million | | Royalty Receipts | $13.4 million | - The CEO emphasized commitment to generating shareholder value via prudent cash deployment, strict expense control, and opportunistic share repurchases, noting a tangible path to sustained cash flow[3] Portfolio Developments Royalty and Milestone Acquisitions XOMA expanded its portfolio by acquiring a royalty interest in D-Fi (FCX-007), a Phase 3 asset for DEB, contributing $5 million to a $75 million syndicated financing - XOMA acquired a royalty interest in the Phase 3 asset D-Fi (FCX-007) for dystrophic epidermolysis bullosa (DEB), which holds FDA Orphan Drug and Fast Track designations[4] - The company contributed $5 million to a $75 million syndicated royalty financing transaction with Castle Creek Biosciences for the D-Fi asset[4] Partner Updates & Milestone Achievements Significant partner progress generated milestone revenue, including Rezolute's Breakthrough Therapy Designations for ersodetug, Day One's MAA filing for tovorafenib ($4.0M milestone), and Takeda's Phase 3 initiation for mezagitamab ($3.0M milestone) - Rezolute received FDA Breakthrough Therapy Designation for ersodetug for two indications, with sunRIZE Phase 3 study enrollment expected to complete in May 2025 and topline data in December 2025[6] - Day One Biopharmaceuticals' partner Ipsen's MAA filing for tovorafenib with the EMA triggered a $4.0 million milestone payment to XOMA[6] - Takeda's dosing of the first patient in a Phase 3 trial for mezagitamab triggered a $3.0 million milestone payment (net) to XOMA in Q2[7] - XOMA made a final $6 million milestone payment to Affitech Research AS for VABYSMO® achieving specific sales thresholds[6] Anticipated 2025 Events of Note XOMA anticipates key 2025 catalysts including a European regulatory decision for Day One's tovorafenib, Rezolute's ersodetug Phase 3 topline data, and Gossamer/Chiesi's PROSERA study results - An EMA decision is expected regarding the MAA for tovorafenib for pediatric low-grade glioma (pLGG)[7] - Topline data from the sunRIZE Phase 3 trial of ersodetug are expected in December 2025[7] - Topline results from the Phase 3 PROSERA study in pulmonary arterial hypertension (PAH) are expected[7] - Sildenafil Cream is anticipated to be available via prescription in Q4 2025 under Section 503B of the FDCA[7] Financial Results First Quarter 2025 Financial Performance XOMA reported Q1 2025 total income and revenues of $15.9 million, up from $1.5 million in Q1 2024, achieving a net income of $2.4 million from a prior-year loss Q1 2025 vs Q1 2024 Financial Summary | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Income & Revenues | $15.9M | $1.5M | +$14.4M | | R&D Expenses | $1.3M | $33K | +$1.27M | | G&A Expenses | $8.1M | $8.5M | -$0.4M | | Net Income (Loss) | $2.4M | ($8.6M) | +$11.0M | - Revenue increase was driven by income from VABYSMO®, a $4.0 million milestone from Day One/Ipsen, a $4.0 million payment from Takeda, and $1.5 million in estimated royalties for OJEMDA™[8] - Increased R&D expenses were mainly due to a $1.0 million pass-through licensing fee related to the Takeda milestone and clinical trial costs for KIN-3248[9] Cash Position and Capital Allocation As of March 31, 2025, XOMA held $95.0 million in cash, received $18.0 million in Q1 cash receipts, and strategically deployed capital for new assets, share repurchases, and dividends - Ended Q1 2025 with $95.0 million in cash and cash equivalents (including $4.8 million in restricted cash), compared to $106.4 million at year-end 2024[15] - Total cash receipts for Q1 2025 were $18.0 million, comprising $13.4 million in royalties/commercial payments and $4.6 million in milestones/fees[15] - Key uses of cash in Q1 2025 included $5.0 million for a new asset acquisition, $0.5 million to repurchase 25,828 shares of common stock, and $1.4 million for preferred stock dividends[15] Consolidated Financial Statements Condensed Consolidated Statements of Operations For Q1 2025, XOMA reported total revenues of $15.9 million and a net income of $2.4 million, a significant improvement from Q1 2024's $1.5 million revenue and $8.6 million net loss Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Total income and revenues | $15,912 | $1,490 | | Total operating expenses | $9,983 | $8,494 | | Income (Loss) from operations | $5,929 | ($7,004) | | Interest expense | ($3,467) | ($3,551) | | Net income (loss) | $2,367 | ($8,595) | | Basic net income (loss) per share | $0.06 | ($0.86) | | Diluted net income (loss) per share | $0.06 | ($0.86) | Condensed Consolidated Balance Sheets As of March 31, 2025, XOMA's total assets were $212.8 million (down from $221.3 million), with total liabilities decreasing to $128.1 million and stockholders' equity increasing to $84.6 million Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Cash and cash equivalents | $90,265 | $101,654 | | Total current assets | $113,225 | $125,604 | | Total assets | $212,750 | $221,277 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Total current liabilities | $20,434 | $24,374 | | Long-term debt | $99,934 | $106,875 | | Total liabilities | $128,121 | $139,356 | | Total stockholders' equity | $84,629 | $81,921 | | Total liabilities and stockholders' equity | $212,750 | $221,277 | Condensed Consolidated Statements of Cash Flows In Q1 2025, XOMA generated $2.2 million cash from operations, used $6.7 million in investing and $6.9 million in financing, resulting in an $11.4 million net cash decrease and a $95.0 million period-end balance Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Net cash provided by (used in) operating activities | $2,198 | ($4,947) | | Net cash used in investing activities | ($6,693) | ($7,246) | | Net cash used in financing activities | ($6,894) | ($4,956) | | Net decrease in cash, cash equivalents and restricted cash | ($11,389) | ($17,149) | | Cash, cash equivalents and restricted cash at beginning of period | $106,416 | $159,550 | | Cash, cash equivalents and restricted cash at end of period | $95,027 | $142,401 | Company Information and Disclosures About XOMA Royalty Corporation XOMA Royalty operates as a biotechnology royalty aggregator, acquiring future economic rights from therapeutic candidates to provide non-dilutive, non-recourse funding to partners - XOMA's business model involves acquiring future economics, including milestones and royalties, from therapeutic candidates of pharmaceutical or biotech companies[16] - This model provides selling partners with non-dilutive, non-recourse funding for their corporate purposes[16] Forward-Looking Statements This section provides a standard safe harbor disclaimer, cautioning that forward-looking statements regarding future events are subject to significant biotech industry risks and uncertainties, including development failures and regulatory approvals - The press release contains forward-looking statements regarding the timing and amount of potential payments, regulatory events, and overall portfolio potential[17] - These statements are not guarantees of performance and are subject to risks, including licensees' ability to fund development, product market viability, and regulatory approval uncertainty[17][18]