Xoma Royalty Corporation · NASDAQ:XOMA
Xoma Royalty — Investor Presentation (October 2024)
30 slides from Xoma Royalty's investor presentation, October 2024
Slide 1: Corporate Presentation: The Royalty Aggregator for Biotech Companies
CORPORATE PRESENTATION THE ROYALTY NASDAQ COMMON: XOMA AGGREGATOR NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO FOR BIOTECH COMPANIES OCTOBER 2024
Slide 2: Disclaimers
DISCLAIMERS Certain statements in this presentation are forward-looking statements only as of the date of this presentation and should not be relied upon as within the meaning of Section 27A of the Securities Act of 1933 and representing its views as of any subsequent date. XOMA disclaims any Sectio
Slide 3: XOMA – What We Do
XOMA – WHAT WE DO Royalties Science Milestones Structuring The Biotech Royalty Aggregator 3
Slide 4: Building the XOMA Business
BUILDING THE XOMA BUSINESS Investors Investors Partners + New Deals > $120M 60+ Scalable since 2017 assets PHASE 3 / COMMERCIAL BUSINESS MODEL MILESTONES PIPELINE REGISTRATION ROYALTIES 4
Slide 5: XOMA Business Model: The Compounding Effect
XOMA BUSINESS MODEL: THE COMPOUNDING Path to Sustained EFFECT Profitability GROWING # of ROYALTIES ↑ CASH RECEIPTS 6 LOW EXPENSES 5 LOW SHARE COUNT INFLECTION 4 HIGH EPS POINT 3 2 LOW EXPENSES SIGNIFICANT 1 SHARE PRICE APPRECIATION present future 5
Slide 6: OJEMDA FDA approval for pediatric low-grade glioma
Approved by FDA for relapsed or refractory BRAF-altered pediatric low-grade glioma (pLGG), the most common form of childhood brain tumor • Acquired economics for $13.5M Upfront in 2021 • Received $22.1M in milestones to date (additional $32M in potential milestones) • Entitled to mid-single digit ro
Slide 7: MIPLYFFA FDA approval for Niemann-Pick Type C
Approved by FDA for use in combination with miglustat for the treatment of neurological manifestations of NPC in adult and pediatric patients 2 years of age and older. • Acquired economics from LadRx for $5M upfront in 2023 • Potential to receive $52.5M in milestones • Entitled to mid-single digit r
Slide 8: XOMA Is Differentiated in the Royalty Space
XOMA IS DIFFERENTIATED IN THE ROYALTY SPACE Capital per transaction $200M+ Royalty Pharma $100M – $200M DRI Healthcare Trust $25M – FOCUSED ON Ligand HCRx $100M EARLY-to-MID STAGE CLINICAL ASSETS <$25M PRECLINICAL PHASE 1 PHASE 2 PHASE 3 APPROVAL COMMERCIAL 8
Slide 9: Business Model Differentiation Should Enhance Value Creation
XOMA’S BUSINESS MODEL DIFFERENTIATION SHOULD ENHANCE VALUE CREATION Visibility into future DCF VALUE + PIPELINE royalty portfolio DCF differentiates XOMA VALUE VALUE from majority of royalty competitors TIME 9
Slide 10: XOMA's Time Is Now
XOMA’S TIME IS NOW… LIFE SCIENCES MARKETS ARE CHALLENGED… …CREATING OPPORTUNITY EQUITY DEBT ROYALTY ↓ Volume ↑ Cost MONETIZATION ↓ Equity Dilution Unlock Latent Value PARTNER M&A ↓ Volume ↓ Volume ↑ Capital Efficiency 10
Slide 11: Opportunities Abound for Royalty Monetization
OPPORTUNITIES ABOUND FOR ROYALTY MONETIZATION LIFE SCIENCES INDUSTRY LICENSING DEALS ANNUALLY License transactions 2014 – 2023 consist of: 645 648 620 ▪ Upfront payment 585 548 ▪ Milestone payments 522 475 472 ▪ Royalty obligations 459 404 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Bloomberg
Slide 12: Basics of a XOMA Royalty Monetization Transaction
BASICS OF A XOMA ROYALTY MONETIZATION TRANSACTION 2 Royalty Monetization License Program Licensed PHARMA 1 Agreement BIOTECH Royalties & Milestones PARTNER 12
Slide 13: XOMA's Ideal Royalty Asset
XOMA’S IDEAL ROYALTY ASSET HIGH ROYALTY POTENTIAL High unmet need or clear clinical benefit over alternatives LONG DURATION OF MARKET EXCLUSIVITY Patent expiration or regulatory exclusivity ESTABLISHED DEVELOPER / MARKETER Assets partnered with reputable pharma / biopharma MID- TO EARLY STAGE CLINIC
Slide 14: Key Assets in XOMA Portfolio
KEY ASSETS IN XOMA PORTFOLIO = 2023 + 2024 Transactions CONSENSUS ASSET COMMERCIAL PARTNER INDICATION STAGE ROYALTY % PEAK SALES 1 VABYSMO® Roche Wet AMD / DME Commercial $7.3B 0.50% OJEMDA Day One pLGG Commercial $1.6B Mid-single digit MIPLYFFA Zevra Niemann-Pick Type C Commercial $175M Mid-single
Slide 15: XOMA Portfolio Construction
XOMA PORTFOLIO CONSTRUCTION RISK-MITIGATED DIVERSIFIED WELL-STRUCTURED H Indication De-Risk PROBABILITY OF SUCCESS BREAKEVEN L H Mechanism L Modality REWARD PAYMENT MILESTONES + ROYALTIES 15
Slide 16: The Power of the XOMA Model
THE POWER OF THE XOMA MODEL Dec 2023 ROYALTY-BACKED LOAN A Single Transaction1 Can Deliver Significant Value for Shareholders $140M 3 XOMA Raises up to $140 Million in Non-Dilutive, Non-Recourse Financing from Funds Managed by Blue Owl Capital Low Cost of Capital Backed by VABYSMO® Royalties Tax Eff
Slide 17: Vosaroxin Transaction
+ VOSAROXIN TRANSACTION: $13.5M upfront to Viracta Therapeutics OJEMDA vosaroxin Pediatric low-grade Myelodysplastic Indication glioma syndromes + AML $54M Milestone Potential Milestone Payments $57M Received: $22.1M Royalty Rate Mid-single digits High single digits Clinical Stage FDA APPROVED1 Phas
Slide 18: Aldoxorubicin Transaction
+ ALDOXORUBICIN TRANSACTION: $6M to LadRx1 MIPLYFFA is a first-in-class therapy for NPC MIPLYFFA aldoxorubicin Indication Niemann-Pick Type C Pancreatic Cancer $52.6M Mid-single digit percentage on Milestone Potential out licensing economics Royalty Rate Mid-single digits Low single Phase 2 Clinical
Slide 19: IXINITY Transaction
IXINITY® TRANSACTION: $9.6M upfront to Aptevo Royalties through 1Q2035 IXINITY® Indication Hemophilia B Milestone Potential undisclosed Royalty Rate 5% FDA approved & commercialized; Clinical Stage sBLA approved in March 2024 for pediatric use <12 yo Partner 19
Slide 20: DSUVIA Transaction
TRANSACTION: $8M upfront to Talphera DSUVIA® (sufentanil sublingual tablet) For use in adults in certified medically Indication supervised healthcare settings to treat acute pain Department of Defense – Use Case Deployed Troop Sets, Kits, Outfits (SKOs) $116.5M Milestone Potential shared with Talphe
Slide 21: Daré Transaction
DARÉ TRANSACTION: $22M upfront to Daré for economic interest in 3 first-in-category assets 1 XACIATO Ovaprene® Sildenafil (clindamycin phosphate) (hormone-free monthly vaginal gel 2% intravaginal contraceptive) Cream, 3.6% Female sexual Indication Bacterial vaginosis Contraception arousal disorder M
Slide 22: Key Portfolio Events 2024 into 2025
KEY PORTFOLIO EVENTS 2024 INTO 2025 FDA Approved* ✓ (tovorafenib) ✓ ADDITIONAL BUSINESS Commercial Pediatric Label FPFD** in Ph3 DEVELOPMENT CHI ✓ Ph3 Start Indication & Geographic Expansion Tumor Hyperinsulinism Expansions Approved RZ358 mezagitamab ✓ ✓ ✓ Commercial Ovaprene® rilvegostomig mezagita
Slide 23: Blue Owl Financing – Up to $140M
BLUE OWL FINANCING – UP TO $140M TERMS STOCKHOLDER WELL-STRUCTURED BENEFIT $130M at close Acquire assets for Non-dilutive, non- cash flow growth recourse capital 9.875% interest Stock repurchases Scaled $14M acquisition Secured only by VABYSMO royalties XOMA retains Strategic partnership long-term v
Slide 24: Kinnate Transaction
KINNATE TRANSACTION: ~$9.5M cash added to XOMA’s balance sheet for additional capital deployment & potential royalties on pipeline Kinnate Stockholders Receive Cash Amount (per share) $2.5879 from out license or 85% sale of Kinnate programs completed of net proceeds within 1 year of closing Continge
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS ($M) $180 $160 Y/E Cash G&A Expenses >$120M >$1B $140 in milestones in potential since 2017 milestones $120 $100 $80 $60 5 assets Potential of 1 generating additional royalty $40 royalty receipts stream in 2024 $20 $0 2016 2017 2018 2019 2020 2021 2022 2023 Stable Expense Base 2
Slide 26: XOMA's Stock Repurchase Program
XOMA’S STOCK REPURCHASE PROGRAM Up to $50 Million through January 2, 2027 DRIVING SHAREHOLDER VALUE 26
Slide 27: Three Publicly Traded Offerings
THREE PUBLICLY TRADED OFFERINGS TO MEET THE NEEDS OF SPECIFIC INVESTORS XOMA Common Stock XOMAP XOMAO Series A Cumulative Perpetual Preferred Stock Series B Cumulative Perpetual Preferred Stock $25.00 par value $25.00 par value 8.625% dividend paid quarterly 8.375% dividend paid quarterly 27
Slide 28: Who We Are
WHO WE ARE ▪ Leadership Board of Directors – Owen Hughes, Chief Executive Officer ▪ Jack Wyszomierski, Chairman – Brad Sitko, Chief Investment Officer CFO of VWR International (retired) – Tom Burns, Chief Financial Officer ▪ Heather L. Franklin Executive Chair of Blaze Bioscience ▪ Business Developm
Slide 29: XOMA's Time Is Now
XOMA’S TIME IS NOW INFLECTION EFFICIENT POINT BUSINESS MODEL FORTHCOMING COMPETITIVE ROYALTIES TO DIFFERENTIATION DRIVE SHAREHOLDER RETURNS Enabling Today’s Science to Be Tomorrow’s Cures 29
Slide 30: Corporate Presentation
CORPORATE PRESENTATION THE ROYALTY NASDAQ COMMON: XOMA AGGREGATOR NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO FOR BIOTECH COMPANIES OCTOBER 2024