XOMA Royalty Reports Fourth Quarter and Full Year 2024 Financial Results and Highlights Business Achievements

Core Insights - XOMA Royalty Corporation has expanded its royalty and milestone portfolio to over 120 assets through five transactions in 2024, significantly enhancing its potential for future revenue [1] - The company completed two whole company acquisitions aimed at unlocking shareholder value, which included Kinnate Biopharma and Pulmokine Inc. [4] - XOMA's products OJEMDA™ (tovorafenib) and MIPLYFFA™ (arimoclomol) received FDA approval, contributing to the company's revenue growth [5] Financial Performance - In Q4 2024, XOMA reported cash receipts of $4.0 million, with total cash receipts for the full year reaching $46.3 million [1] - Total income and revenues for 2024 were $28.5 million, a significant increase from $4.8 million in 2023, primarily driven by income from purchased receivables [10] - The net loss for 2024 was $13.8 million, an improvement from a net loss of $40.8 million in 2023, largely due to reduced credit losses [18] Acquisitions and Investments - XOMA Royalty completed a $15 million royalty monetization agreement with Twist Bioscience, acquiring 50% of future milestones and royalties from over 60 partnered early-stage programs [3] - The acquisition of Kinnate Biopharma added approximately $7.8 million in cash and five assets to XOMA's portfolio, while the acquisition of Pulmokine provided a milestone and royalty interest in seralutinib [4] - The company invested $65 million in acquiring new milestone and royalty assets in 2024 [19] Product Development and Approvals - The commercial royalty portfolio now includes six assets supported by FDA-approved products such as VABYSMO® (faricimab), OJEMDA™, and MIPLYFFA™ [2] - XOMA anticipates several key readouts in 2025 from its Phase 3 portfolio, which includes 11 assets [2] - The FDA approved OJEMDA™ for pediatric low-grade glioma, resulting in a $9.0 million milestone payment for XOMA [5] Future Outlook - XOMA Royalty is well-positioned for sustainable cash flow from royalties, with over $100 million in cash on hand [2] - The company expects to normalize R&D and G&A expenses in the second half of 2025, following the transient expenses related to recent acquisitions [11][12] - Anticipated events in 2025 include the completion of enrollment in the sunRIZE Phase 3 clinical trial and the initiation of registrational studies for various assets [7][9]