XOMA Expands Its Commercial Royalty And Milestone Portfolio With DSUVIA Acquisition; Provided An $8M Non-Dilutive Royalty Capital Solution To Talphera
Portfolio Pulse from Benzinga Newsdesk
XOMA Corporation (NASDAQ:XOMA) has expanded its royalty and milestone portfolio by acquiring an economic interest in DSUVIA from Talphera, Inc. for $8 million. XOMA will receive a 15% royalty on commercial sales, a significant portion of the 75% royalty from U.S. Department of Defense purchases, and at least 50% of potential $116.5 million in milestone payments. DSUVIA is a pain management drug approved by the FDA and recently divested to Alora Pharmaceuticals. XOMA's investment is part of its strategy to acquire royalty economics with attractive risk/reward profiles.
January 18, 2024 | 1:32 pm
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XOMA's acquisition of DSUVIA economic interests could boost its revenue through royalties and milestone payments, enhancing its investment portfolio.
The acquisition of DSUVIA's economic interests is likely to have a positive short-term impact on XOMA's stock price. The deal provides XOMA with a new revenue stream from royalties and milestone payments, which could significantly increase its earnings. Given that XOMA is fully retaining a 15% royalty on commercial sales and at least 50% of potential milestone payments, this deal aligns with the company's strategy and may be viewed favorably by investors.
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