XOMA Corporation (NASDAQ: XOMA), the Biotech Royalty Aggregator,
reported its full year 2022 financial results and provided an
operational update on the Company’s actions to accelerate XOMA’s
differentiated biotech royalty and milestone acquisition strategy.
“Since joining the Company in January, Brad Sitko and I have
continually been impressed by the opportunities in front of
XOMA. After having a significant number of royalty and
milestone acquisition conversations since January, we are making
decisions thoughtfully and rapidly about the opportunities on which
we want to transact. We are assessing each potential
opportunity with an eye to maximizing shareholder returns,” stated
Owen Hughes, Executive Chairman of XOMA.
“With cash receipts from Vabysmo® (faricimab) and Day One’s
public comments regarding filing a New Drug Application for
tovorafenib in the first half of 2023, XOMA could be reporting
incoming cash from two portfolio assets by the end of 2024.
Our economic interests in both these assets were acquired within
the past two years. In addition, we have learned from our
partners’ public statements there also may be three assets entering
Phase 3 development in 2023, which would further increase the value
of XOMA’s portfolio. Those are just a few examples of the
progression within the more than 70 royalty and milestone assets in
our portfolio. With the potential incoming cash receipts from
commercialized assets and anticipated milestone payments, we have
the ability to accelerate our royalty acquisition strategy and
continue to grow XOMA’s portfolio,” said Brad Sitko, Chief
Investment Officer of XOMA.
Fourth Quarter and Full Year 2022
Financial Results
Revenues for the fourth quarter and year ended December 31,
2022, were $1.5 million and $6.0 million, respectively. For
the full year of 2022, XOMA’s reported revenues were related to
milestone payments of $2.0 million from Rezolute, $0.8 million from
Takeda, $0.8 million from Compugen, and $0.5 million from
Sonnet. Revenues in the fourth quarter and year ended
December 31, 2021, were $35.9 million and $38.2 million,
respectively. For the full year of 2021, XOMA’s reported
revenues included milestones of $35.0 million from Novartis, $0.5
million from Compugen, and $0.7 million from Janssen.
The Company’s research and development (R&D) expenses for
the quarter and the full year of 2022 were $0.03 million and $0.2
million, respectively, compared to $0.04 million and $0.2 million
in the corresponding periods of 2021.
General and administration (G&A) expenses were $7.6 million
and $23.2 million for the fourth quarter and year-ended December
31, 2022, respectively. G&A expenses were $5.5 million
and $20.5 million for the corresponding periods of 2021. The
$2.7 million net increase in 2022, compared with 2021, was
primarily due a $2.6 million increase in salaries and related
expenses, including the $1.2 million Continuity Incentive accrued
in connection with the retirement of Jim Neal, a $0.7 million
increase in salaries and wages due to increased headcount and
general salary increases, $0.4 million related to bonus payments to
Mr. Neal pursuant to his amended employment agreement, and $0.1
million accrued in connection with the employee retention bonus.
Additionally, an increase in consulting and legal costs of
$2.3 million contributed to the overall increase in 2022. The
totality of the increases in 2022 were partially offset by a $2.6
million reduction in stock-based compensation expense for stock
options.
In the fourth quarter and full year of 2022, G&A expenses
included $1.0 million and $3.6 million, respectively, in non-cash
stock-based compensation expense, compared with $1.7 million and
$6.2 million for the corresponding periods of 2021. XOMA’s
net cash used in operations in the fourth quarter of 2022 was $3.9
million and $12.9 million for the full year of 2022, compared with
net cash provided by operations in the fourth quarter of 2021 of
$30.7 million and $22.7 million for the full year of 2021.
Net loss for the fourth quarter and year ended December 31,
2022, was $6.0 million and $17.1 million, respectively. Net
income for the fourth quarter of 2021 was $29.8 million and $15.8
million for the full year of 2021.
On December 31, 2022, XOMA had cash and cash equivalents of
$57.8 million and no debt on its balance sheet. On December
31, 2021, XOMA had cash and restricted cash of $95.4 million.
On January 17, 2023, the Company paid cash dividends on the
8.625% Series A Cumulative Perpetual Preferred Stock (Nasdaq:
XOMAP) equal to $0.53906 per share and cash dividends on the 8.375%
Series B Cumulative Perpetual Preferred Stock (Nasdaq: XOMAO) equal
to $0.52344 per depositary share. In February 2023, XOMA
received a cash payment from Roche, representing the second
commercial payment from XOMA’s 0.5% commercial interest in the
sales of Vabysmo®. The payment will be reflected in the
Company’s condensed consolidated balance sheet as of March 31,
2023, as a reduction of short-term royalty and commercial payment
receivables.
“The first year’s commercial performance of Vabysmo® has
demonstrated the significant impact that even a small percentage of
sales from a single multi-billion-dollar product can have on XOMA’s
financial outlook. Excluding any additional asset
acquisitions, we believe incoming net cash of over $20 million from
a combination of milestones that are expected this year together
with anticipated royalties should cover our annual base operating
and dividend expenses in 2023. Given the nature of our
milestone and royalty agreements, we expect cash flows will be
uneven on a quarterly basis over the next few years. This
reflects the imprecise timing of when milestones occur and assets
are commercialized. Looking at 2024, the milestones and
royalties we anticipate should continue to contribute significantly
towards covering our base operating expenses and dividend
obligations,” stated Tom Burns, Chief Financial Officer at
XOMA.
About XOMA CorporationXOMA is a biotechnology
royalty aggregator playing a distinctive role in helping biotech
companies achieve their goal of improving human health. XOMA
acquires the potential future economics associated with
pre-commercial therapeutic candidates that have been licensed to
pharmaceutical or biotechnology companies. When XOMA acquires
the future economics, the seller receives non-dilutive,
non-recourse funding they can use to advance their internal drug
candidate(s) or for general corporate purposes. The Company
has an extensive and growing portfolio with more than 70 assets
(asset defined as the right to receive potential future economics
associated with the advancement of an underlying therapeutic
candidate). For more information about the Company and its
portfolio, please visit www.xoma.com.
Forward-Looking Statements/Explanatory Notes
Certain statements contained in this press release 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 the timing and amount
of potential commercial and milestone payments to XOMA, the
potential of XOMA’s portfolio of partnered programs and licensed
technologies generating substantial milestone and royalty proceeds
over time, XOMA’s business forecast, the potential expansion and
accelerated growth of XOMA’s portfolio, and the potential for this
portfolio to generate sustained cashflows and positive returns over
time. In some cases, you can identify such forward-looking
statements by terminology such as “anticipate,” “intend,”
“believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,”
“will”, “would,” “could” or “should,” the negative of these terms
or similar expressions. These forward-looking statements are
not a guarantee of XOMA’s performance, and you should not
place undue reliance on such statements. These statements are
based on assumptions that may not prove accurate, and actual
results could differ materially from those anticipated due to
certain risks inherent in the biotechnology industry, including
those related to the fact that our product candidates subject to
out-license agreements are still being developed, and our licensees
may require substantial funds to continue development which may not
be available; we do not know whether there will be, or will
continue to be, a viable market for the products in which we have
an ownership or royalty interest; if the therapeutic product
candidates to which we have a royalty interest do not receive
regulatory approval, our third-party licensees will not be able to
market them; and the impact to the global economy as a result of
the COVID-19 pandemic. Other potential risks to XOMA meeting
these expectations are described in more detail in XOMA's most
recent filing on Form 10-K and in other filings with the Securities
and Exchange Commission. Consider such risks carefully when
considering XOMA's prospects. Any forward-looking statement
in this press release represents XOMA's beliefs and assumptions
only as of the date of this press release and should not be relied
upon as representing its views as of any subsequent date.
XOMA disclaims any obligation to update any forward-looking
statement, except as required by applicable law.
EXPLANATORY NOTE: Any references to “portfolio” in this press
release refer strictly to milestone and/or royalty rights
associated with a basket of drug products in development. Any
references to “assets” in this press release refer strictly to
milestone and/or royalty rights associated with individual drug
products in development.
As of the date of this press release, all assets in XOMA’s
milestone and royalty portfolio, except Vabysmo® (faricimab), are
investigational compounds. Efficacy and safety have not been
established. There is no guarantee that any of the investigational
compounds will become commercially available.
XOMA
Investor Contact |
XOMA
Media Contact |
Juliane Snowden |
Kathy Vincent |
XOMA Corporation |
KV Consulting & Management |
+1 646-438-9754 |
+1 310-403-8951 |
juliane.snowden@xoma.com |
kathy@kathyvincent.com |
XOMA CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except share and per share
amounts) |
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
57,826 |
|
|
$ |
93,328 |
|
Restricted cash |
|
- |
|
|
|
2,049 |
|
Short-term equity securities |
|
335 |
|
|
|
774 |
|
Trade and other receivables, net |
|
1 |
|
|
|
209 |
|
Short-term royalty and commercial payment receivables |
|
2,366 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
725 |
|
|
|
613 |
|
Total current assets |
|
61,253 |
|
|
|
96,973 |
|
Property and equipment,
net |
|
7 |
|
|
|
13 |
|
Operating lease right-of-use
assets |
|
29 |
|
|
|
200 |
|
Long-term royalty and
commercial payment receivables |
|
63,683 |
|
|
|
69,075 |
|
Intangible assets,
net |
|
15,150 |
|
|
|
- |
|
Other assets - long
term |
|
260 |
|
|
|
301 |
|
Total assets |
$ |
140,382 |
|
|
$ |
166,562 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
524 |
|
|
$ |
1,072 |
|
Accrued and other liabilities |
|
2,918 |
|
|
|
525 |
|
Income taxes payable |
|
- |
|
|
|
91 |
|
Contingent consideration under RPAs and CPPAs |
|
75 |
|
|
|
8,075 |
|
Operating lease liabilities |
|
34 |
|
|
|
195 |
|
Unearned revenue recognized under units-of-revenue method |
|
1,899 |
|
|
|
1,641 |
|
Preferred stock dividend accrual |
|
1,368 |
|
|
|
1,368 |
|
Total current liabilities |
|
6,818 |
|
|
|
12,967 |
|
Unearned revenue recognized
under units-of-revenue method – long-term |
|
9,550 |
|
|
|
11,685 |
|
Long-term operating lease
liabilities |
|
- |
|
|
|
34 |
|
Total liabilities |
|
16,368 |
|
|
|
24,686 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Preferred Stock, $0.05 par value, 1,000,000 shares authorized: |
|
|
|
8.625% Series A cumulative, perpetual preferred stock, 984,000
shares issued and outstanding at December 31, 2022, and December
31, 2021 |
|
49 |
|
|
|
49 |
|
8.375% Series B cumulative, perpetual preferred stock, 1,600 shares
issued and outstanding at December 31, 2022, and December 31,
2021 |
|
— |
|
|
|
— |
|
Convertible preferred stock, 5,003 issued and outstanding at
December 31, 2022, and December 31, 2021 |
|
— |
|
|
|
— |
|
Common stock, $0.0075 par value, 277,333,332 shares authorized,
11,454,025 and 11,315,263 shares issued and outstanding at December
31, 2022, and December 31, 2021, respectively |
|
86 |
|
|
|
85 |
|
Additional paid-in capital |
|
1,306,271 |
|
|
|
1,307,030 |
|
Accumulated deficit |
|
(1,182,392 |
) |
|
|
(1,165,288 |
) |
Total stockholders’ equity |
|
124,014 |
|
|
|
141,876 |
|
Total liabilities and stockholders’ equity |
$ |
140,382 |
|
|
$ |
166,562 |
|
|
|
|
|
XOMA CORPORATION |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS) INCOME |
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
Revenue from
contracts with customers |
$ |
850 |
|
|
$ |
35,424 |
|
|
$ |
4,150 |
|
|
$ |
36,518 |
|
Revenue
recognized under units-of-revenue method |
|
636 |
|
|
|
520 |
|
|
|
1,877 |
|
|
|
1,642 |
|
Total
revenues |
|
1,486 |
|
|
|
35,944 |
|
|
|
6,027 |
|
|
|
38,160 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
28 |
|
|
|
42 |
|
|
|
153 |
|
|
|
171 |
|
General and administrative |
|
7,571 |
|
|
|
5,537 |
|
|
|
23,191 |
|
|
|
20,460 |
|
Amortization of intangible assets |
|
97 |
|
|
|
- |
|
|
|
97 |
|
|
|
- |
|
Total
operating expenses |
|
7,696 |
|
|
|
5,579 |
|
|
|
23,441 |
|
|
|
20,631 |
|
|
|
|
|
|
|
|
|
(Loss)
income from operations |
|
(6,210 |
) |
|
|
30,365 |
|
|
|
(17,414 |
) |
|
|
17,529 |
|
|
|
|
|
|
|
|
|
Other income (expense), net: |
|
|
|
|
|
|
|
Interest
expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(461 |
) |
Loss on
extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(300 |
) |
Other income
(expense), net |
|
219 |
|
|
|
(430 |
) |
|
|
295 |
|
|
|
(879 |
) |
(Loss) income before income
tax |
|
(5,991 |
) |
|
|
29,935 |
|
|
|
(17,119 |
) |
|
|
15,889 |
|
Income tax benefit
(expense) |
|
15 |
|
|
|
(91 |
) |
|
|
15 |
|
|
|
(91 |
) |
Net (loss) income and
comprehensive (loss) income |
$ |
(5,976 |
) |
|
$ |
29,844 |
|
|
$ |
(17,104 |
) |
|
$ |
15,798 |
|
Net (loss) income and
comprehensive (loss) income (attributable to) available to common
stockholders, basic |
$ |
(7,344 |
) |
|
$ |
19,744 |
|
|
$ |
(22,576 |
) |
|
$ |
7,787 |
|
Net (loss) income and
comprehensive (loss) income (attributable to) available to common
stockholders, diluted |
$ |
(7,344 |
) |
|
$ |
20,136 |
|
|
$ |
(22,576 |
) |
|
$ |
7,968 |
|
Basic net (loss) income per
share (attributable to) available to common stockholders |
$ |
(0.64 |
) |
|
$ |
1.75 |
|
|
$ |
(1.98 |
) |
|
$ |
0.69 |
|
Diluted net (loss) income per
share (attributable to) available to common stockholders |
$ |
(0.64 |
) |
|
$ |
1.67 |
|
|
$ |
(1.98 |
) |
|
$ |
0.65 |
|
Weighted average shares used
in computing basic net (loss) income per share (attributable to)
available to common stockholders |
|
11,452 |
|
|
|
11,313 |
|
|
|
11,413 |
|
|
|
11,288 |
|
Weighted average shares used
in computing diluted net (loss) income per share (attributable to)
available to common stockholders |
|
11,452 |
|
|
|
12,079 |
|
|
|
11,413 |
|
|
|
12,192 |
|
|
|
|
|
|
|
|
|
XOMA CORPORATION |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in thousands) |
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
Net (loss) income |
$ |
(17,104 |
) |
|
$ |
15,798 |
|
Adjustments to reconcile net (loss) income to net cash (used in)
provided by operating activities: |
|
|
|
|
|
Stock-based compensation expense |
|
3,608 |
|
|
|
6,195 |
|
Common stock contribution to 401(k) |
|
85 |
|
|
|
90 |
|
Depreciation |
|
7 |
|
|
|
7 |
|
Amortization of debt issuance costs, debt discount and final
payment on debt |
|
— |
|
|
|
200 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
300 |
|
Reduction of contingent NIH refund liability |
|
— |
|
|
|
(105 |
) |
Non-cash lease expense |
|
170 |
|
|
|
160 |
|
Change in fair value of equity securities |
|
439 |
|
|
|
919 |
|
Amortization of intangible assets |
|
97 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
|
Trade and other receivables, net |
|
208 |
|
|
|
54 |
|
Income tax receivable |
|
— |
|
|
|
1,526 |
|
Prepaid expenses and other assets |
|
(71 |
) |
|
|
(169 |
) |
Accounts payable and accrued liabilities |
|
1,845 |
|
|
|
765 |
|
Income taxes payable |
|
(91 |
) |
|
|
91 |
|
Operating lease liabilities |
|
(195 |
) |
|
|
(179 |
) |
Unearned revenue recognized under units-of-revenue method |
|
(1,877 |
) |
|
|
(1,642 |
) |
Contingent NIH refund liability |
|
— |
|
|
|
(1,305 |
) |
Other liabilities |
|
— |
|
|
|
(27 |
) |
Net cash (used in) provided by operating activities |
|
(12,879 |
) |
|
|
22,678 |
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Payments of consideration under RPAs and CPPAs |
|
(8,000 |
) |
|
|
(26,500 |
) |
Receipts under RPAs and CPPAs |
|
3,026 |
|
|
|
— |
|
Payment for IP acquired under the ObsEva IP Acquisition
Agreement |
|
(15,247 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(20,221 |
) |
|
|
(26,500 |
) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from issuance of preferred stock |
|
— |
|
|
|
40,000 |
|
Payment of preferred stock dividends |
|
(5,472 |
) |
|
|
(3,499 |
) |
Payment of preferred and common stock issuance costs |
|
— |
|
|
|
(3,385 |
) |
Proceeds from exercise of options and other share-based
compensation |
|
2,419 |
|
|
|
1,584 |
|
Taxes paid related to net share settlement of equity awards |
|
(1,398 |
) |
|
|
(488 |
) |
Principal payments – debt |
|
— |
|
|
|
(4,250 |
) |
Net cash (used in) provided by financing activities |
|
(4,451 |
) |
|
|
12,835 |
|
|
|
|
|
|
|
Net (decrease) increase in cash, cash equivalents and restricted
cash |
|
(37,551 |
) |
|
|
9,013 |
|
Cash and restricted cash at the beginning of the period |
|
95,377 |
|
|
|
86,364 |
|
Cash, cash equivalents and restricted cash at the end of the
period |
$ |
57,826 |
|
|
$ |
95,377 |
|
|
|
|
|
|
|
Supplemental Cash Flow Information: |
|
|
|
|
Cash paid for taxes |
$ |
76 |
|
|
$ |
— |
|
Cash paid for interest |
$ |
— |
|
|
$ |
311 |
|
Non-cash investing and financing activities: |
|
|
|
|
Preferred stock dividend accrual |
$ |
1,368 |
|
|
$ |
1,368 |
|
Accrued transaction costs in connection with ObsEva IP
Acquisition |
$ |
122 |
|
|
$ |
— |
|
XOMA Royalty (NASDAQ:XOMA)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
XOMA Royalty (NASDAQ:XOMA)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024