Xoma Royalty Corporation · NASDAQ:XOMA
Xoma Royalty — XOMA — Investor Presentation (October 2023)
23 slides from Xoma Royalty's investor presentation, October 2023
Slide 1: Corporate Presentation: The Royalty Aggregator for Biotech Companies
CORPORATE PRESENTATION THE ROYALTY AGGREGATOR FOR BIOTECH NASDAQ: XOMA COMPANIES OCTOBER 2023
Slide 2: Disclaimers
DISCLAIMERS Certain statements in this presentation are forward-looking Any forward-looking statements represent XOMA’s views only as of statements within the meaning of Section 27A of the Securities Act of the date of this presentation and should not be relied upon as 1933 and Section 21E of the Se
Slide 3: XOMA – What We Do
XOMA – WHAT WE DO Royalties Science Milestones Structuring A Biotech Royalty Aggregator 3
Slide 4: Building the XOMA Business
BUILDING THE XOMA BUSINESS Investors Investors + Partners Partners New Deals $90M+ 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: 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: Deal Activity Accelerated Significantly in 2023
DEAL ACTIVITY ACCELERATED SIGNIFICANTLY IN 2023 LEADING INDICATORS 1H 2023 vs 2H 2022 Initial Reviews 150+ 2x CDAs Signed 60 3x In-Depth Reviews 47 4x Proposals 18 2x Completed 3 3x 12
Slide 13: Key Assets in XOMA Portfolio
KEY ASSETS IN XOMA PORTFOLIO = 2023 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% Tovorafenib Day One pLGG Registration $1.2B Mid-single Arimoclomol Zevra Niemann-Pick
Slide 14: 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 14
Slide 15: Vabysmo – The Power of the XOMA Model
VABYSMO® – THE POWER OF THE XOMA MODEL A Single Transaction1 Shows the Value of our Science + Structuring Approach Science $2.4B $5.1B2 $7.5B2 Structuring XOMA’S VABYSMO Royalty $6M Signing $5M FDA approval XOMA Corporate Expenses $3M EU approval October 7, 2021 XOMA Purchases Commercial Payment Rig
Slide 16: 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 Clinical Stage NDA filing Oct ʽ23 Phase 2 Partner 16
Slide 17: Arimoclomol + Aldoxorubicin Transaction
ARIMOCLOMOL + ALDOXORUBICIN TRANSACTION: $5M upfront 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-sin
Slide 18: IXINITY Transaction
IXINITY® TRANSACTION: $9.6M upfront to Aptevo Royalties through 1Q2035 IXINITY® Indication Hemophilia B Milestone Potential undisclosed Royalty Rate 5% FDA approved & commercialized Clinical Stage sBLA filed for pediatric use <12 yo Partner 18
Slide 19: Key Portfolio Events Over the Next 12–18 Months
KEY PORTFOLIO EVENTS OVER THE NEXT 12–18 MONTHS NDA Filing ADDITIONAL BUSINESS tovorafenib DEVELOPMENT Commercial LAUNCH RAMP Label Expansion Phase 3 Start Phase 3 Start Phase 3 Start Pediatric Population CHI rilvegostomig ficlatuzumab iscalimab mezagitamab MK-4830 vidutolimod Phase 2 Phase 2 Phase
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS ($M) $100 Y/E Cash $90M+ ~$1.1B $80 Expenses in milestones in potential since 2017 milestones $60 $40 2 assets Potential to X 2 $20 generating # of royalty royalty receipts streams in 2024 $0 2016 2017 2018 2019 2020 2021 2022 Stable Expense Base 20
Slide 21: Who We Are
WHO WE ARE ▪ Leadership Board of Directors – Owen Hughes, Executive Chair ▪ Owen Hughes, Executive Chair – Brad Sitko, Chief Investment Officer XOMA – Tom Burns, Chief Financial Officer ▪ Heather L. Franklin Blaze Bioscience ▪ Business Development Team ▪ Natasha Hernday Seagen ▪ Legal Team ▪ Barbara
Slide 22: 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 22
Slide 23: Corporate Presentation: The Royalty Aggregator for Biotech Companies
CORPORATE PRESENTATION THE ROYALTY AGGREGATOR FOR BIOTECH NASDAQ: XOMA COMPANIES OCTOBER 2023