Xoma Royalty Corporation · NASDAQ:XOMA
Xoma Royalty — XOMA — Investor Presentation (August 2020)
28 slides from Xoma Royalty's investor presentation, Aug 11, 2020
Slide 1: Corporate Presentation: A Royalty Aggregation Company
Exhibit 99.1 CORPORATE PRESENTATION A ROYALTY AGGREGATION COMPANY AUGUST 2020 NASDAQ: XOMA 1Exhibit 99.1 CORPORATE PRESENTATION A ROYALTY AGGREGATION COMPANY AUGUST 2020 NASDAQ: XOMA 1
Slide 2: Disclaimers
DISCLAIMERS Certain statements in this presentation are forward-looking Potential risks to XOMA meeting these expectations are statements within the meaning of Section 27A of the Securities described in more detail in XOMA's most recent filing on Form Act of 1933 and Section 21E of the Securities Ex
Slide 3: XOMA Snapshot
XOMA SNAPSHOT ▪ Acquire pre-commercial drug royalties ₋ Use portfolio approach to expand number of royalty positions ₋ Differentiate by focusing on development-stage assets with blockbuster potential licensed to large-cap partners ▪ Provide exposure, through royalties, to the upside potential of bio
Slide 4: Basics of a Royalty Monetization Transaction
BASICS OF A ROYALTY MONETIZATION TRANSACTION STEP 2: STEP 1: Program Licensed BIG BIOTECH PHARMA Royalties & Milestones 4 4BASICS OF A ROYALTY MONETIZATION TRANSACTION STEP 2: STEP 1: Program Licensed BIG BIOTECH PHARMA Royalties & Milestones 4 4
Slide 5: Royalty Financings Can Help Companies Raise Capital More Efficiently Than Equity
ROYALTY FINANCINGS CAN HELP COMPANIES RAISE CAPITAL MORE EFFICIENTLY THAN EQUITY AND IS LESS ONEROUS THAN DEBT Equity Equity Debt Royalty Financing Debt Cost of Capital High Medium to High Low to Medium Dilution High Low NA Royalty Financing Medium High Low Covenants/Restrictions High Medium to High
Slide 6: Opportunities Abound for Royalty Industry Monetization
OPPORTUNITIES TOTAL ABOUND FOR ROYALTY INDUSTRY 1,988 MONETIZATION LICENSING DEALS ’14-’18 PHASE 3 236 LICENSING DEALS: Biotech & Pharma License Transactions consist of: PHASE 2 343 LICENSING DEALS: • Milestone payments • Royalty obligations PHASE 1 Companies’ funding 194 LICENSING DEALS: needs incr
Slide 7: XOMA Is Positioned to Monetize Royalties on Mid- to Early-Stage Clinical Assets
XOMA IS POSITIONED TO MONETIZE ROYALTIES ON MID- TO EARLY-STAGE CLINICAL ASSETS Capital per transaction > $100M Royalty Pharma Ligand $25M – $100M HCRP < $25M 7 P R E C L I N I C A L P H A S E 1 P H A S E 2 P H A S E 3 A P P R O V A L C O M M E R C I A LXOMA IS POSITIONED TO MONETIZE ROYALTIES ON MI
Slide 8: XOMA Acquisition Strategy Is Distinct
XOMA ACQUISITION STRATEGY IS DISTINCT THE BENEFITS TO ▪ Acquire milestone and royalty rights to ASSET SELLERS: high-potential, fully funded assets Recognize value of non-dilutive, ▪ Focus on mid-stage clinical assets non-recourse financing ▪ Ever-increasing pipeline of Ability to monetize license- p
Slide 9: Key Attributes of XOMA Target Assets
KEY ATTRIBUTES OF XOMA TARGET ASSETS STRONG DEVELOPER/MARKETER Assets partnered with high-quality pharma / biopharma companies PRE-COMMERCIAL THERAPEUTIC ASSETS R x Therapeutic area agnostic LONG DURATION OF MARKET EXCLUSIVITY Patent expiration or regulatory exclusivity HIGH REVENUE POTENTIAL High u
Slide 10: XOMA-Agenus Transaction
XOMA-AGENUS TRANSACTION % % % 7 10 100 33 Assets with Large- of Agenus’ of Future Immuno- Cap Partners Royalty Interest Milestones Oncology Focus Total XOMA Investment: $ 15M 10XOMA-AGENUS TRANSACTION % % % 7 10 100 33 Assets with Large- of Agenus’ of Future Immuno- Cap Partners Royalty Interest Mi
Slide 11: XOMA-Aronora Transaction
XOMA-ARONORA TRANSACTION % % % 2 OF 5 10 100 100 Assets with Large- of Aronora’s of Future Anti-Thrombotic Cap Partner Royalty Interest Milestones Focus Total XOMA Investment: $ 9M 11XOMA-ARONORA TRANSACTION % % % 2 OF 5 10 100 100 Assets with Large- of Aronora’s of Future Anti-Thrombotic Cap Partn
Slide 12: XOMA-Palobiofarma Transaction
XOMA-PALOBIOFARMA TRANSACTION st % % 1 OF 6 1 100 100 Assets with Large- Adenosine Diversification into Clinical-Stage Cap Partner Receptor-Focused Oral Compounds Assets Total XOMA Investment: $ 10M 12XOMA-PALOBIOFARMA TRANSACTION st % % 1 OF 6 1 100 100 Assets with Large- Adenosine Diversification
Slide 13: These Transactions Hit All of the Key Attributes of XOMA Target Assets
THESE TRANSACTIONS HIT ALL OF THE KEY ATTRIBUTES OF XOMA TARGET ASSETS PRE-COMMERCIAL THERAPEUTIC ASSETS Phase 1, Phase 2 typically R x Potentially 10 years LONG DURATION EXCLUSIVITY post-commercialization Immuno-oncology, anti- HIGH REVENUE POTENTIAL thrombotics, COPD & NASH STRONG DEVELOPER/MARKET
Slide 14: Measuring XOMA's Intrinsic Value Today
MEASURING XOMA’S INTRINSIC VALUE TODAY XOMA PORTFOLIO PROFILE ‒ 65+ assets and growing FULLY FUNDED PROGRAMS ‒ > 60% of assets in clinical-stage development 65+ ‒ Many with blockbuster revenue potential 45 TYPICAL XOMA ECONOMICS 30 ‒ Development & Sales milestones 25 ‒ Average royalty rate: ~2.5% ‒
Slide 15: XOMA's Portfolio: 65+ Partnered Programs
XOMA’S PORTFOLIO: 65+ PARTNERED PROGRAMS PRECLINICAL PHASE 1 PHASE 1/2 PHASE 2 PHASE 3 BLA FILING 1 17 Total Future 3 Development Expenses by XOMA: 19 11 $0 42 Assets with 16+ Large-Cap Partners 15XOMA’S PORTFOLIO: 65+ PARTNERED PROGRAMS PRECLINICAL PHASE 1 PHASE 1/2 PHASE 2 PHASE 3 BLA FILING 1 17
Slide 16: Examples of Conditions & Diseases XOMA Partners Are Pursuing
EXAMPLES OF CONDITIONS & DISEASES XOMA PARTNERS ARE PURSUING Lupus Nephritis Multiple Myeloma Squamous Cell Carcinoma Systemic Lupus Erythematosus Metastatic Solid Tumors Non-muscle Invasive Bladder Cancer Kidney Transplant Prostate Cancer Advanced Solid Tumors Liver Transplant Urothelial Cancer Gli
Slide 17: Capturing Immuno-Oncology's Next Wave
CAPTURING IMMUNO- ONCOLOGY’S NEXT WAVE XOMA’s current royalty portfolio covers >90% of the next generation of emerging and novel I-O targets Reference: Marin-Acevedo, J.A., Dholaria, B., Soyano, A.E. et al. Next generation of immune 17 checkpoint therapy in cancer: new developments and challenges. J
Slide 18: XOMA's Portfolio: Key Highlights
(Does not include all assets, including XOMA’S PORTFOLIO: KEY HIGHLIGHTS certain assets subject to confidentiality agreements) PARTNER ASSET NAME TARGET ROYALTY RATE PARTNER ASSET NAME TARGET ROYALTY RATE Bayer BAY1213790 (osocimab) Factor XIa Low single-digit Alligator Bioscience (Janssen) JNJ-6445
Slide 19: XOMA's Significant Royalty Revenue Potential
XOMA’S SIGNIFICANT ROYALTY REVENUE POTENTIAL ASSETS BY PROJECTED PEAK SALES POTENTIAL Royalty Rate at < $500M $500M - $1B ≥ $1B Projected Peak Sales < 2.5% 20+ 15 11 2.5% - 7.5% 4 4 8 7.5% - 15% 1 1 3 9 of 25+ 13 of 20 18 of 22 with large-cap partners with large-cap partners with large-cap partners
Slide 20: Strategy Requires 2 Things
STRATEGY REQUIRES 2 THINGS XOMA Spend 1. PATIENCE - PROVIDE TIME FOR ($M) UNDERLYING DRUG ASSETS TO $120 ADVANCE THROUGH YEARS OF SG&A $100 DISCOVERY, DEVELOPMENT R&D $80 AND APPROVAL $60 2. LEAN INFRASTRUCTURE - $40 MINIMIZE COSTS $20 $0 2014 2016 2019 20STRATEGY REQUIRES 2 THINGS XOMA Spend 1. PAT
Slide 21: Recent Highlights
RECENT HIGHLIGHTS OPERATIONAL PARTNERS & PARTNERED ASSETS ▪ Increased number of royalty licenses by 40% since 3Q18 ▪ Novartis ₋ Oncology clinical studies with gevokizumab ▪ Acquired milestone & royalty interests in: started ‒ 2 Bayer assets & 3 unpartnered assets from Aronora ₋ Iscalimab (CFZ533) da
Slide 22: Partners & Looking Ahead
PARTNERS & LOOKING AHEAD PARTNERED ASSETS OPERATIONAL NOVARTIS Iscalimab data readouts – multiple Phase 2 studies ▪ Acquire additional milestone NOVARTIS TGFβ advancing to Phase 2 and royalty interest assets to continue to grow the portfolio NOVARTIS Gevokizumab advancing to Phase 2 ▪ Maintain lean
Slide 23: Q2 2020 Results
i, i 2 y ~ ~ ’ I Q2 2020 Results Investor Presentation July 21, 2020 & Novartis
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Slide 25: Novartis
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Slide 26: XOMA Royalty Rate: Mid-single digits to low teens
XOMA Royalty Rate: Mid-single digits to low teens 26XOMA Royalty Rate: Mid-single digits to low teens 26
Slide 27: XOMA Royalty Rates
XOMA Royalty Rates Iscalimab Mid-single to low teens VPM087 Mid-single to low teens NIS793 Mid-single to low teens NIR178 Low-single digits 27XOMA Royalty Rates Iscalimab Mid-single to low teens VPM087 Mid-single to low teens NIS793 Mid-single to low teens NIR178 Low-single digits 27
Slide 28: Why XOMA's Portfolio Is Valuable
WHY XOMA’S PORTFOLIO IS VALUABLE ▪ XOMA holds 65+ current assets; pharmaceutical partners fund research & development and cover 100% of costs ▪ XOMA sources royalty rights through deep industry network ▪ XOMA constructs an increasingly diverse and expanding portfolio to increase odds of success and