Xoma Royalty Corporation · NASDAQ:XOMA
Xoma Royalty — Investor Presentation (March 2024)
27 slides from Xoma Royalty's investor presentation, March 2024
Slide 1: Corporate Presentation
CORPORATE PRESENTATION THE ROYALTY NASDAQ COMMON: XOMA AGGREGATOR NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO FOR BIOTECH COMPANIES MARCH 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 Partners New Deals $95M+ 60+ since 2017 assets Scalable BUSINESS PHASE 3 / COMMERCIAL 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: 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 6
Slide 7: XOMA's 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 7
Slide 8: 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 8
Slide 9: Opportunities Abound for Royalty Monetization
OPPORTUNITIES ABOUND FOR ROYALTY MONETIZATION LIFE SCIENCES INDUSTRY LICENSING DEALS ANNUALLY License transactions 2014 – 2022 consist of: 645 648 620 ▪ Upfront payment 585 548 ▪ Milestone payments 522 475 ▪ Royalty obligations 459 404 2014 2015 2016 2017 2018 2019 2020 2021 2022 Bloomberg data 9
Slide 10: 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 10
Slide 11: 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 CLINICA
Slide 12: Key Assets in XOMA Portfolio
KEY ASSETS IN XOMA PORTFOLIO = 2023 + 2024 Transactions CONSENSUS ASSET PARTNER INDICATION STAGE ROYALTY % PEAK SALES 1 VABYSMO® Roche Wet AMD / DME Commercial $5.1B 0.50% IXINITY® Medexus Hemophilia B Commercial $57M 5% Acute pain in supervised DSUVIA® Alora Pharmaceuticals Commercial NA 15 – 75% m
Slide 13: 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 13
Slide 14: 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 15: Tovorafenib + Vosaroxin Transaction
TOVORAFENIB + VOSAROXIN TRANSACTION: $13.5M upfront to Viracta Therapeutics tovorafenib vosaroxin Pediatric low-grade Myelodysplastic Indication glioma syndromes + AML Milestone $54M $57M Potential Royalty Rate Mid-single digits High single digits PDUFA April 30, 20241 Clinical Stage Phase 2 NDA fil
Slide 16: Arimoclomol + Aldoxorubicin Transaction
ARIMOCLOMOL + ALDOXORUBICIN TRANSACTION: $6M to LadRx1 Arimoclomol will be a first-in-class therapy if approved by regulatory authorities for NPC arimoclomol aldoxorubicin Indication Niemann-Pick Type C Pancreatic Cancer Milestone Potential $52.6M $343M Royalty Rate Mid-single digits Mid-single to m
Slide 17: 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 filed for pediatric use <12 yo Partner 17
Slide 18: DSUVIA Transaction
DSUVIA 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 Troops Sets, Kits, Outfits (SKOs) $116.5M Milestone Potential shared w
Slide 19: Key Portfolio Events 2024 into 2025
KEY PORTFOLIO EVENTS 2024 INTO 2025 NDA Approval* tovorafenib ADDITIONAL Commercial BUSINESS Label Expansion FPFD** in P3 FPFD in P3 DEVELOPMENT LAUNCH RAMP Pediatric Population RZ358 ficlatuzumab rilvegostomig mezagitamab vidutolimod Commercial Phase 2b data PD-1/TIGIT Phase 2 data CD38 Phase 2 dat
Slide 20: 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 21: Kinnate Transaction: ~$9.5M Cash
KINNATE TRANSACTION: ~$9.5M cash added to XOMA’s balance sheet for additional capital deployment & potential royalties on pipeline Kinnate Stockholders Receive Cash Amount $2.3352 + ≤ $0.2527 (per share) from out license or 85% sale of Kinnate programs completed of net proceeds within 1 year of clos
Slide 22: Financial Highlights
FINANCIAL HIGHLIGHTS ($M) $180 $160 Y/E Cash G&A Expenses >$95M >$1B $140 in milestones in potential since 2017 milestones $120 $100 $80 $60 3 assets Potential of 2 generating additional royalty $40 royalty receipts streams in 2024 $20 $0 2016 2017 2018 2019 2020 2021 2022 2023 Stable Expense Base 2
Slide 23: XOMA's Stock Repurchase Program
XOMA’S STOCK REPURCHASE PROGRAM Up to $50 Million through January 2, 2027 DRIVING SHAREHOLDER VALUE 23
Slide 24: Three Publicly Traded Offerings to Meet Needs of Specific Investors
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 24
Slide 25: 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 26: 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 26
Slide 27: Corporate Presentation
CORPORATE PRESENTATION THE ROYALTY NASDAQ COMMON: XOMA AGGREGATOR NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO FOR BIOTECH COMPANIES MARCH 2024