XOMA Corporation has filed its Form 10-Q for the quarterly period ended March 31, 2024. The company is a smaller reporting company and an emerging growth company. As of May 6, 2024, XOMA had 11,638,553 shares of common stock outstanding.
Company Overview
XOMA is a biotechnology company focused on acquiring rights to future milestone and royalty payments associated with partnered pre-commercial and commercial stage therapies. As of March 31, 2024, XOMA had $136.2 million in cash and an accumulated deficit of $1.2 billion.
Recent Events
In April 2024, XOMA acquired Kinnate Biopharma in a $2.6 billion deal. The acquisition provides XOMA with potential future cash flows from Kinnate’s pipeline assets.
In January 2024, Owen Hughes was appointed Chief Executive Officer of XOMA.
In January 2024, XOMA initiated a $50 million share repurchase program to buy back XOMA common stock through January 2027. As of March 31, 2024, XOMA had repurchased $13,000 of its common stock.
Revenue
XOMA’s total revenue for Q1 2024 was $1.5 million compared to $0.4 million in Q1 2023:
Revenue Source | Q1 2024 | Q1 2023 | Change |
---|---|---|---|
Contract revenue | $1 million | $0 | +$1 million |
Other revenue | $0.49 million | $0.44 million | +$0.05 million |
The increase in contract revenue was due to a $1 million milestone payment from AVEO in Q1 2024.
Expenses
XOMA’s operating expenses for Q1 2024 were $8.5 million compared to $10.6 million in Q1 2023:
Expense | Q1 2024 | Q1 2023 | Change |
---|---|---|---|
R&D | $33,000 | $54,000 | -$21,000 |
G&A | $8.5 million | $6.2 million | +$2.3 million |
The increase in G&A was primarily due to higher personnel costs and consulting/legal fees.
Net Loss
XOMA’s net loss for Q1 2024 was $8.6 million compared to $10.2 million in Q1 2023. The reduced net loss was primarily due to the increase in revenue.
Cash Position
As of March 31, 2024, XOMA had $136.2 million in cash and cash equivalents compared to $153.3 million at December 31, 2023. The decrease reflects operating losses and debt repayments, partially offset by new financing.
XOMA believes it has sufficient resources to fund at least 12 months of operations. Future cash requirements include:
Debt
In December 2023, XOMA secured a $125 million debt facility from Blue Owl Capital. The debt bears annual interest of 9.875%. XOMA began making semi-annual interest payments in March 2024.
Outlook
XOMA expects increased personnel costs going forward associated with its new CEO. The company also anticipates higher consulting/legal expenses related to evaluating potential royalty acquisitions.
XOMA’s revenue and cash position is highly dependent on its partners achieving development, regulatory and commercial milestones to trigger milestone & royalty payments to XOMA.