Tue, May 13, 11:47 AM (31 days ago)
**XOMA Royalty Corporation (XOMA, XOMA) Q1 2025 Summary** **Financial Performance:** - **Revenue:** $15.9M (Q1 2024: $1.5M) - Income from purchased receivables under the EIR method: $6.1M - Income from purchased receivables under the cost recovery method: $5.5M - Revenue from contracts with customers: $4.0M - Revenue recognized under units-of-revenue method: $0.3M - **Net Income:** $2.4M (Q1 2024: -$8.6M) - **Operating Expenses:** $9.9M (Q1 2024: $8.5M) - Research and development: $1.3M (Q1 2024: $0.03M) - General and administrative: $8.1M (Q1 2024: $8.5M) - Amortization of intangible assets: $0.5M (Q1 2024: $0) - **Cash Flow:** - Operating activities: $2.2M (Q1 2024: -$4.9M) - Investing activities: -$6.7M (Q1 2024: -$7.2M) - Financing activities: -$6.9M (Q1 2024: -$5.0M) **Key Financial Metrics:** - **Cash Position:** $90.3M in unrestricted cash and cash equivalents, $4.8M in restricted cash (Q1 2024: $101.7M) - **Debt:** $113.6M in long-term debt (Q1 2024: $106.9M) - **Share Repurchase:** $0.6M spent on repurchasing 26,488 shares (Q1 2024: $0) **Operational Highlights:** - **Kinnate Acquisition:** Completed sale of all five pipeline assets, eligible for up to $270M in upfront and milestone payments, plus future royalties. - **Castle Creek Royalty Purchase Agreement:** Contributed $5.0M to Castle Creek Biosciences’ royalty financing for D-Fi, a Phase 3 asset for DEB. - **Takeda Collaboration Agreement:** Earned $3.0M milestone payment for dosing the first patient in a Phase 3 clinical trial of mezagitamab. **Future Outlook:** - **Revenue Growth:** Expects income related to VABYSMO and OJEMDA to increase as sales grow. - **Operating Expenses:** Anticipates normalization of R&D costs following the sale of Kinnate pipeline assets. - **Cash Flow:** Plans to use cash from commercial payments related to VABYSMO to pay down the Blue Owl Loan. - **Capital Resources:** Sufficiency to fund operations, commitments, and contractual obligations for at least one year. **Risks and Uncertainties:** - Market fluctuations and economic downturns could negatively impact results of operations and liquidity. - Disruptions at the FDA and other regulatory agencies could delay approvals and impact business. - Dependence on milestone payments and royalty streams from partners and licensees.