CORPORATE PRESENTATION - THE ROYALTY AGGREGATOR FOR BIOTECH
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CORPORATE
PRESENTATION
THE ROYALTY
AGGREGATOR
FOR BIOTECH
NASDAQ: XOMA
COMPANIES
FEBRUARY 2023
DISCLAIMERS
Certain statements in this presentation are forward-looking SEC filings. Consider such risks carefully when considering XOMA's
statements within the meaning of Section 27A of the Securities Act of prospects. Any forward-looking statements represent XOMA’s views
1933 and Section 21E of the Securities Exchange Act of 1934, only as of the date of this presentation and should not be relied upon
including statements regarding: future potential monetization as representing its views as of any subsequent date. XOMA disclaims
opportunities, active transactions with significant financial implications, any obligation to update any forward-looking statement, except as
collaborations poised for significant financial contribution, our library required by law.
of potentially value-generating assets, future potential for milestone
and royalty payments, the potential of our antibody discovery engine, NOTE: All references to “portfolio” in this presentation are to
potential out-licensing of our internal compounds and products, the milestone and/or royalty rights associated with a basket of drug
ability of our partners and their licensees to successfully develop their products in development. All references to “assets” in this
pipeline programs, the productivity of acquired assets, our revenue presentation are to milestone and/or royalty rights associated with
forecasts, upcoming internal milestones and value catalysts, our future individual drug product candidates in development. References to
cash needs, our strategy for value creation, and other statements that royalties or royalty rates contained herein refer to future potential
relate to future periods. These statements are not guarantees of future payment streams regardless of whether or not they are technically
performance and undue reliance should not be placed on them. They defined as royalties in the underlying contractual agreement; further,
are based on assumptions that may not prove accurate, and actual any rates referenced herein are subject to potential future contractual
results could differ materially from those anticipated due to certain adjustments.
risks inherent in the biotechnology industry and for companies
engaged in the development of new products in a regulated market.
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
2
OPPORTUNITIES ABOUND
FOR ROYALTY MONETIZATION
Biotech & Pharma
INDUSTRY LICENSING DEALS ANNUALLY license
2014 – 2021 transactions
consist of:
645 648
620 ▪ Milestone payments
585
522 548 ▪ Royalty obligations
459
404 Companies’
funding needs
increase over time
2014 2015 2016 2017 2018 2019 2020 2021
Bloomberg data 3
XOMA ROYALTY & MILESTONE LICENSE ACQUISITIONS
COMPANY PARTNER / LICENSEE ASSETS ACQUIRED CAPITAL DEPLOYED THERAPEUTIC AREA
$14M wAMD, DME, diabetic
Affitech 1 ($6M upfront, $5M on FDA retinopathy
approval, $3M on EU approval)
ObsEva 1 $15M Preterm labor
Viracta 2 $13.5M Oncology
Kuros 1 $7M Immuno-Oncology
($2.5M milestone earned since)
Agenus 7 $15M Immuno-Oncology
($1M milestone earned since)
Palobiofarma 6 $10M Oncology, NASH, Asthma
Aronora 5 $9M Thrombotics
Bioasis 4 $1.2M Lysosomal Storage Disorders
4
EBOPIPRANT TRANSACTION:
$15M outlay to ObsEva
$377M potential milestones
Mid-single to low-teens royalty, net
Organon secured development & commercialization license
from ObsEva in July 2021
“This development-stage asset is being studied in one of the
most crucial unmet needs for women globally. As we build
Organon’s women’s health research and development
portfolio, the agreement strengthens our path to long term
growth,” said Kevin Ali, Organon’s Chief Executive Officer.1
1. https://www.organon.com/news/organon-and-obseva-enter-global-license-agreement-to-develop-and-commercialize-
ebopiprant-obe022-an-investigational-agent-being-evaluated-as-a-first-in-class-treatment-for-preterm-labor/ 5
BASICS OF A XOMA ROYALTY
MONETIZATION TRANSACTION
STEP 1: STEP 2:
Capital
BIOTECH Royalties & Milestones
Program Royalties &
Licensed Milestones
BIG
PHARMA
6
XOMA IS POSITIONED TO MONETIZE ROYALTIES ON MID-
TO EARLY STAGE CLINICAL ASSETS
Capital per transaction
$200M +
Royalty Pharma
$100M –
DRI
$200M
Healthcare
Trust
$25M – Ligand
$100M HCRP
< $25M
PRECLINICAL PHASE 1 PHASE 2 PHASE 3 APPROVAL COMMERCIAL
7
ROYALTY MONETIZATION - INCREASINGLY IN FOCUS
8
ROYALTY MONETIZATION - INCREASINGLY MORE
ATTRACTIVE
Source: The Brookline Brief, November 2, 2022
9
XOMA SNAPSHOT
Portfolio of
▪ Acquire drug royalties associated with mid- to early
stage clinical candidates 70+ ASSETS
– Differentiate by focusing on development-stage assets in >30 disclosed indications
with blockbuster potential licensed to large-cap partners
today and growing
▪ Provide exposure, through royalties, to the upside
▪ Roche – VABYSMO® (faricimab)1
potential of biotech
→ $0.5M in cash receipts on
– Capital-efficient model; R&D costs are borne by partners sales through 6/30/22
– Interim milestone payments have covered much of our
low operating costs ▪ Novartis – NIS793, iscalimab,
– Exposure risk mitigated through diverse portfolio effects gevokizumab
– Nasdaq: XOMA, XOMAP, XOMAO ▪ Merck – MK-4830
▪ Royalty interests are not diluted as companies ▪ Organon – ebopiprant → $377M
raise capital potential milestones, mid-single
to low teens royalties, net
▪ Janssen - cetrelimab
1. Acquired economic rights from Affitech SA
10KEY XOMA PORTFOLIO ASSETS
https://www.xoma.com/portfolio
11XOMA’S PORTFOLIO
FDA APPROVED PHASE 3 PHASE 2 Further
Development
1Asset
2
Assets
26Assets
Expenses by
XOMA:
PHASE 1/2 PHASE 1 PRECLINICAL
$0
2 16 15+
>50% of assets with
Large-cap partners
Assets Assets Assets
12SINCE 2017, XOMA’S PORTFOLIO HAS SEEN
>25 ADVANCEMENTS FROM PHASE TO PHASE
12
11
Program
Advancements
Since 2017:
3
2
1
Entered Clinic Ph 1 to Ph 2 Ph 2a to Ph 2b Ph 2 to Ph 3 FDA Approved
13POTENTIAL PARTNER-DRIVEN CLINICAL EVENTS:
2023 EXPECTATIONS
S PO N S O R/ PROGRAM: Phase 1 Phase 2 Phase 3 Regulatory
Day One / tovorafenib Ph 2 pediatric low-grade glioma readout Ph 3 initiation Est 1H2023 NDA filing
Rezolute / RZ358 Ph 2 completed - CHI readout Ph 3 initiation
Novartis / iscalimab Ph 2 Sjögren’s Syndrome readout Publication 2023
Novartis / iscalimab Ph 2 Lupus Nephritis readout
Novartis / NIS793 Ph 2 pancreatic cancer completion
Novartis / NIR178 Ph 2 solid tumors & DLBCL completion As disclosed
by partners in
Affimed / AFM13 Ph 2 PTCL top-line data
public filings
Janssen / cetrelimab Ph 1/2 niraparib combo completion
Merck / MK-4830 Ph 1/2 esophageal cancer initiation
Novartis / NIR178 Ph 1 TNBC readout
Regeneron / vidutolimod Ph 1 melanoma completion
Organon / ebopiprant IND Filing
As disclosed by partners on Clinicaltrials.gov and/or public announcements - dates as of 1/2/2023 - all subject to change 14XOMA Royalty Rates: NIS793 Mid-single digit to low teens iscalimab Mid-single digit to low teens gevokizumab High-single digit to mid teens NIR178 Low-single digits
WHO WE ARE
Board of Directors
▪ Leadership ▪ Owen Hughes, Executive Chair
XOMA
– Owen Hughes, Executive Chair
▪ Heather L. Franklin
– Brad Sitko, Chief Investment Officer Blaze BioScience
– Tom Burns, Chief Financial Officer ▪ Natasha Hernday
Seattle Genetics
▪ Business Development Team ▪ Barbara Kosacz
Kronos Bio
▪ Legal Team
▪ Joe Limber
Secura Bio
▪ Finance Team
▪ Matthew Perry
▪ Consultants BVF Partners
– Deal sourcing ▪ Denny Van Ness
Hidden Hill Advisors
– Scientific
▪ Jack Wyszomierski
– Medical VWR International (retired)
16WHAT WE LOOK FOR IN AN ASSET
STRONG DEVELOPER/MARKETER
Assets partnered with high-quality pharma / biopharma companies
MID- TO EARLY STAGE CLINICAL ASSETS
Rx
Therapeutic area agnostic
LONG DURATION OF MARKET EXCLUSIVITY
Patent expiration or regulatory exclusivity
HIGH REVENUE POTENTIAL
High unmet need or clear clinical benefit over alternatives
17FINANCIAL HIGHLIGHTS
($M)
$100
Y/E Cash
$90
$80
Expenses
>$94M
$70 in milestone
$60 payments
$50
since 2016
$40
$30 ~$1.5B
$20 in potential
$10
milestones
$0
2016 2017 2018 2019 2020 2021
18Regulatory agencies in US, EU, Japan, others
have granted commercialization approval to
Roche’s VABYSMO® (faricimab)
XOMA received >$0.5M
on sales through 6/30/22
THE FIRST ASSET UNDER XOMA’S ROYALTY
AGGREGATOR BUSINESS MODEL TO BE APPROVED
Acquired economic rights from Affitech SA
19WHAT MAKES XOMA SO EXCITING
▪ XOMA’s model demonstrates future potential through cash from commercial sales
‒ >$0.5M cash received from Roche’s VABYSMO®1 sales through 6/30/22
▪ Potential royalty stream on 70+ assets; pharmaceutical partners fund 100% of
research & development costs
‒ Novartis – NIS793, iscalimab, gevokizumab
‒ Merck – MK-4830
‒ Organon – ebopiprant - $377M potential milestones, low- to mid-teens royalties
‒ Janssen - cetrelimab
▪ XOMA sources royalty rights through deep industry network
▪ Increasingly diverse and expanding portfolio
‒ Improves odds of success and mitigate binary risk
▪ XOMA’s future royalty revenues are paired with a low-cost infrastructure
▪ 3 ways to invest – XOMA, XOMAP, XOMAO
1. Acquired economic rights from Affitech SA 20CORPORATE
PRESENTATION
THE ROYALTY
AGGREGATOR
FOR BIOTECH
NASDAQ: XOMA
COMPANIES
FEBRUARY 2023A SIGNIFICANT NUMBER OF PARTNER-DRIVEN
CLINICAL EVENTS ACHIEVED IN 2021 & 2022
As disclosed by partners in public filings
PHASE 1 PHASE 1/2 PHASE 2 PHASE 3 REGULATORY
▪ Bayer/osocimab: ▪ Incyte/INCAGN01876: Advanced Rezolute/RZ358: ▪ Novartis/NIS793: ▪ Roche/VABYSMO®
ESRD completed malignancies completed CHI readout mPDAC initiation (faricimab)1:
FDA, EU, Japan approvals
▪ Takada/TAK-079: ▪ Checkmate/CMP-001 + Takeda/TAK-079: ▪ JNJ/cetrelimab:
SLE completed Incyte/INCAGN01949: Pancreatic Generalized myasthenia gravis MIBC initiation
cancer initiation completed
▪ Incyte/INCAGN02390: ▪ Day One/tovorafenib
Advanced malignancies Takeda/TAK-079: ▪ Novartis/NIR178 pediatric low-grade glioma
completed r/r multiple myeloma completed DLBCL readout initiation
▪ JNJ/cetrelimab: ▪ Affimed/AFM24: JNJ/cetrelimab: ▪ Rezolute/RZ358
Prostate cancer completed EGFR cancers initiation SunRISe-4 initiation CHI initiation
JNJ/cetrelimab: ▪ Novartis/NIS793: JNJ/cetrelimab:
Hepatitis B virus initiation Advanced malignancies completed Daratumumab combo completion
▪ Novartis/NIR178: ▪ Day One/tovorafenib: ▪ Regeneron/vidutolimod:
Triple negative breast Combo study with cemiplimab initiation
cancer readout pimasertib initiated
▪ Novartis/NIS793:
▪ Takeda/TAK-079: Merck/MK-4830 mCRC initiation (daNIS-3)
NFMM readout Esophageal cancer initiation
Incyte/INCAGN02385 +
▪ Regeneron/vidutolimod: Merck/MK-4830 INCAGN0290:
multiple readouts Advanced esophageal cancer SCCHN initiation
initiation
Sonnet/SON-1010 ▪ Regeneron/vidutolimod:
solid cancer initiation Melanoma completed
Rezolute/RZ402:
DME initiation
As disclosed by partners on Clinicaltrials.gov and/or public announcements - dates as of 1/2/2023 1. Acquired economic rights from Affitech SA 22You can also read
