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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POSITIVE IMPACT
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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