Xoma Royalty Corporation · NASDAQ:XOMA
Xoma Royalty — XOMA — Investor Presentation (January 2020)
28 slides from Xoma Royalty's investor presentation, Jan 13, 2020
Slide 1: Corporate Presentation January 2020
corporate PRESENTATION January 2020 NASDAQ: XOMA A Royalty Aggregation Company Exhibit 99.1
Slide 2: Disclaimers
DISCLAIMERS Certain statements in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding: future potential monetization opportunities, active transactions
Slide 3: 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 biotech Capital-efficient
Slide 4: XOMA's Value Proposition
XOMA’s Value Proposition Typical Small/ Mid-Cap Biotech PORTFOLIO SIZE 1 - 3 assets 65+ assets PORTFOLIO FOCUS Narrow Diversified PROBABILITY OF AN APPROVAL Low High RISK : RETURN High : High Low : Mid / High CAPITAL User Provider
Slide 5: Basics of a royalty monetization
Basics of a royalty monetization TRANSACTION BIOTECH BIG PHARMA Capital Royalties & Milestones Royalties & Milestones STEP 1: Program Licensed STEP 2:
Slide 6: Royalty Financings Raise Capital More Efficiently than Equity
Royalty Financings can Help Companies Raise Capital More Efficiently than Equity and is Less Onerous than Debt Equity Debt Royalty Financing Cost of Capital High Medium to High Low to Medium Dilution High Low NA Covenants/Restrictions Medium High Low Transaction Cost High Medium to High Low Control
Slide 7: Opportunities Abound for Royalty Monetization
236 1,988 343 194 1,215 Biotech & Pharma License Transactions consist of: Milestone payments Royalty obligations Companies’ funding needs increase over time Bloomberg data PHASE 3 Licensing Deals: PHASE 2 Licensing Deals: PHASE 1 Licensing Deals: Preclinical/other Licensing Deals: Opportunities Abou
Slide 8: XOMA Positioned to Monetize Mid- to Early-Stage Clinical Assets
PRECLINICAL PHASE 1 PHASE 2 PHASE 3 APPROVAL COMMERCIAL > $100M $25M – $100M < $25M Capital per transaction Ligand Royalty Pharma HCRP XOMA is Positioned to Monetize Royalties on MID- TO EARLY-STAGE CLINICAL ASSETS
Slide 9: XOMA Acquisition Strategy Is Distinct
THE BENEFITS TO ASSET SELLERS: Recognize value of non-dilutive, non-recourse financing Ability to monetize license- economics of mid-stage clinical assets Immediate cash infusion to advance high-priority internal programs to improve human health Acquire milestone and royalty rights to high-potential
Slide 10: Key Attributes of XOMA Target Assets
KEY ATTRIBUTES OF XOMA TARGET ASSETS PRE-COMMERCIAL THERAPEUTIC ASSETS Therapeutic area agnostic LONG DURATION OF MARKET EXCLUSIVITY Patent expiration or regulatory exclusivity HIGH REVENUE POTENTIAL High unmet need or clear clinical benefit over alternatives STRONG DEVELOPER/MARKETER Assets partner
Slide 11: XOMA-Agenus Transaction
XOMA-AGENUS TRANSACTION Total XOMA Investment: $15M 7 33% 10% 100% of Future Milestones Assets with Large-Cap Partners of Agenus’ Royalty Interest Immuno- Oncology Focus
Slide 12: XOMA-Aronora Transaction
XOMA-ARONORA TRANSACTION Total XOMA Investment: $9M 2 OF 5 100% 10% 100% of Future Milestones Assets with Large-Cap Partner of Aronora’s Royalty Interest Anti-Thrombotic Focus
Slide 13: XOMA-Palobiofarma Transaction
XOMA-PALOBIOFARMA TRANSACTION Total XOMA Investment: $10M 1 OF 6 100% 1st 100% Diversification into Oral Compounds Assets with Large-Cap Partner Adenosine Receptor-Focused Clinical-Stage Assets
Slide 14: These Transactions Hit All Key Attributes of Target Assets
LONG DURATION EXCLUSIVITY HIGH REVENUE POTENTIAL STRONG DEVELOPER/MARKETER Rx PRE-COMMERCIAL THERAPEUTIC ASSETS Phase 1, Phase 2 typically Potentially 10 years post-commercialization Immuno-oncology, anti-thrombotics, COPD & NASH Incyte, Merck, Bayer, Novartis THESE TRANSACTIONS HIT ALL OF THE KEY A
Slide 15: XOMA Portfolio Profile
XOMA PORTFOLIO PROFILE 65+ assets and growing > 60% of assets in clinical-stage development Many with blockbuster revenue potential TYPICAL XOMA ECONOMICS Development & Sales milestones Average royalty rate: ~2.5% Royalty term: 8 – 12 years post commercialization MEASURING XOMA’S INTRINSIC VALUE TOD
Slide 16: XOMA's Portfolio: 65+ Partnered Programs
Preclinical PHASE 1 Phase 1/2 Phase 2 Phase 3 BLA filing 1 Total Future Development Expenses by XOMA: $0 42 Assets with Large-Cap Partners 15 6 20 10 10+ XOMA’S PORTFOLIO: 65+ PARTNERED PROGRAMS
Slide 17: Conditions & Diseases XOMA Partners Are Pursuing
EXAMPLES OF CONDITIONS & DISEASES XOMA PARTNERS ARE PURSUING Lupus Nephritis Thromboembolism Squamous Cell Carcinoma Systemic Lupus Erythematosus End Stage Renal Disease Pancreatic Cancer Kidney Transplant Metastatic Solid Tumors Anti-Botulism Liver Transplant Prostate Cancer Asthma Hidradenitis Sup
Slide 18: XOMA's Portfolio: Key Highlights
XOMA’S PORTFOLIO: KEY HIGHLIGHTS (Does not include all assets, including certain assets subject to confidentiality agreements) PARTNER ASSET NAME TARGET ROYALTY RATE Bayer BAY1213790 Factor XIa Low single-digit Bayer BAY1831865 Factor XI Low single-digit Bayer/Aronora AB023 (xisomab 3G3) Factor XI L
Slide 19: Capturing Immuno-Oncology's Next Wave
Reference: Marin-Acevedo, J.A., Dholaria, B., Soyano, A.E. et al. Next generation of immune checkpoint therapy in cancer: new developments and challenges. J Hematol Oncol 11, 39 (2018) XOMA’s current royalty portfolio covers Capturing Immuno-Oncology’s Next Wave of the next generation of emerging an
Slide 20: Novartis R&D Day
Novartis R&D Day London, UK December 5, 2019 tb NOVARTIS | Re
Slide 21: Iscalimab (CFZ533)
Iscalimab (CFZ533) Fully human monoclonal antibody blocking the CD154- CD40 pathway Key highlights Potential to provide “One Transplant for Life” with improv patient and graft survival and become the new SoC a Kidney transplant grafts showed pristine histology, suggesting potential to provide calcin
Slide 22: Potential to reimagine transplantation with better graft survival
Potential to reimagine transplantion with better graft tion and | ici y Pp! ‘Today with Standard of Care i + Hypothetical illustration Mite 9 SS 10y mediangrat survival ime USA (USROS report 2018) ‘Tomorrow with iscalimab failure requiring dialysis or resransplant UD NOVARTIS | keimagining Medicine
Slide 23: A pipeline in a product
Eric Hughes, MD, Global Head Immunology, Hepatology and Dermatology Development Unit, Novartis “A pipeline in a product.”
Slide 24: XOMA's Significant Royalty Revenue Potential
ASSETS BY PROJECTED PEAK SALES POTENTIAL XOMA’S SIGNIFICANT ROYALTY REVENUE POTENTIAL Example: If a partnered product were to achieve $1B in annual sales, and XOMA held a 3% royalty on that product, XOMA would receive $30M annual royalty revenue plus any interim revenue from development & regulatory
Slide 25: Strategy
STRATEGY Requires 2 Things XOMA Spend ($M) PATIENCE - PROVIDE TIME FOR UNDERLYING DRUG ASSETS TO ADVANCE THROUGH YEARS OF DISCOVERY, DEVELOPMENT AND APPROVAL LEAN INFRASTRUCTURE - MINIMIZE COSTS
Slide 26: 2019 Highlights
Increased number of royalty licenses by 40% since 3Q18 Acquired milestone & royalty interests in: 2 Bayer assets & 1 Bayer option & 2 unpartnered assets from Aronora 1 Novartis asset & 5 unpartnered assets from Palobiofarma Future assets from 2 technology platform companies Added 9 Janssen Biotech a
Slide 27: Looking Ahead
Looking ahead Acquire additional milestone and royalty interest assets to continue to grow the portfolio Maintain lean cost infrastructure and financial discipline Current balance sheet sufficient to fund operations for multiple years ~$1M per month core G&A expense OPERATIONAL NOVARTIS Iscalimab da
Slide 28: 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 mitigate binary risk XOMA has low-cost