XOMA Reports Second Quarter 2022 Financial Results and Highlights Recent Operational Events
08/04/2022 - 07:30 AM
The completion of Regeneron’s acquisition of Checkmate Pharmaceuticals resulted in a $5 million milestone payment to Kuros, $2.5 million of which was paid to XOMA in July.
Data from Rezolute and Day One led both companies to announce plans to move their assets into Phase 3 programs.
Ended the second quarter of 2022 with cash of $83.2 million and no debt on its balance sheet.
EMERYVILLE, Calif., Aug. 04, 2022 (GLOBE NEWSWIRE) -- XOMA Corporation (Nasdaq: XOMA), a biotech royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of advancing novel therapeutic candidates aimed at improving human health, reported its second quarter 2022 financial results and provided a recent operations update.
“The assets in our royalty and milestone portfolio made significant progress in the first half of 2022. In the second quarter, Rezolute presented the results from its Phase 2b RIZE clinical study of RZ358 in patients with congenital hyperinsulinism (CHI) at the Pediatric Endocrine Society’s 2022 Annual Meeting. The study results exceeded expectations leading Rezolute to announce its intention to launch a Phase 3 program1 . Day One presented initial data from the Pivotal FIREFLY-1 trial of tovorafenib (DAY101) in patients with pediatric low-grade glioma. In its presentations, Day One’s management articulated its Phase 3 clinical trial plan, which is expected to begin in the third quarter of 20222 . Both companies raised capital on their respective data to fund the Phase 3 programs3 . We look forward to further public announcements from both Rezolute and Day One as children with CHI or low-grade glioma need access to new therapeutic options,” stated Jim Neal, Chairman and Chief Executive Officer of XOMA.
“We have had a recent addition to our early clinical-stage assets as Sonnet BioTherapeutics launched Phase 1 development activities for SON-1010, which resulted in our earning a milestone payment. We congratulate all of our partners for their recent successes.”
Financial Results $1.0 million for the second quarter of 2022 and $0.9 million for the second quarter of 2021.
Research and development (“R&D”) expenses were $40,000 and $38,000, respectively, for the second quarters of 2022 and 2021.
General and administrative (“G&A”) expenses were $5.7 million for the second quarter of 2022, compared to $3.9 million for the second quarter of 2021. The increase of $1.8 million for the three months ended June 30, 2022, as compared to the corresponding period of 2021, was due primarily to a $0.9 million increase in consulting and legal expenses associated with deal costs, $0.4 million increase in personnel related costs, and a $0.2 million increase in executive search fees for XOMA’s new Chief Executive Officer.
In the second quarter of 2022, G&A expenses included $0.8 million in non-cash stock-based compensation expense, which was consistent with the second quarter of 2021. XOMA’s net cash used in operations in the second quarter of 2022 was $4.3 million , as compared with $4.0 million during the second quarter of 2021.
Other income, net was $0.1 million for the second quarter of 2022, compared to other income, net of $1.3 million in the corresponding quarter of 2021. The fluctuation in other income, net between the quarters ended June 30, 2022 and 2021, is primarily due to the change in the fair value of equity securities XOMA holds in Rezolute, Inc.
Net loss for the second quarter of 2022 was $4.7 million , compared to net loss of $2.2 million for the second quarter of 2021.
On June 30, 2022, XOMA had cash of $83.2 million . On July 15, 2022, the Company paid cash dividends on the 8.625% Series A Cumulative Perpetual Preferred Stock (Nasdaq: XOMAP) equal to $0.53906 per share and cash dividends on the 8.375% Series B Cumulative Perpetual Preferred Stock (Nasdaq: XOMAO) equal to $0.52344 per depositary share. The Company ended December 31, 2021, with cash and restricted cash of $95.4 million . After paying its remaining debt obligations in the second quarter of 2021, XOMA has no debt on its balance sheet. The Company continues to believe its current cash position will be sufficient to fund XOMA’s operations for multiple years.
About XOMA Corporation www.xoma.com .
Forward-Looking Statements/Explanatory Notes
EXPLANATORY NOTE: Any references to “portfolio” in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development. Any references to “assets” in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.
As of the date of this press release, all assets in XOMA’s milestone and royalty portfolio, except faricimab, are investigational compounds. Efficacy and safety have not been established. T here is no guarantee that any of the investigational compounds will become commercially available.
XOMA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues: Revenue from contracts with customers $ 525 $ 525 $ 3,275 $ 544 Revenue recognized under units-of-revenue method 458 376 815 731 Total revenues 983 901 4,090 1,275 Operating expenses: Research and development 40 38 96 99 General and administrative 5,710 3,927 10,826 10,667 Total operating expenses 5,750 3,965 10,922 10,766 Loss from operations (4,767 ) (3,064 ) (6,832 ) (9,491 ) Other income (expense), net: Interest expense - (172 ) - (461 ) Loss on extinguishment of debt - (300 ) - (300 ) Other income (expense), net 97 1,299 (118 ) 642 Net loss and comprehensive loss $ (4,670 ) $ (2,237 ) $ (6,950 ) $ (9,610 ) Less: accumulated dividends on Series A and Series B preferred stock (1,368 ) (1,293 ) (2,736 ) (1,824 ) Net loss available to common stockholders, basic and diluted $ (6,038 ) $ (3,530 ) $ (9,686 ) $ (11,434 ) Basic and diluted net loss per share available to common stockholders $ (0.53 ) $ (0.31 ) $ (0.85 ) $ (1.02 ) Weighted average shares used in computing basic and diluted net loss per share available to common stockholders 11,421 11,285 11,376 11,263
XOMA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share and per share amounts) June 30, December 31, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 83,182 $ 93,328 Restricted cash - 2,049 Short-term equity securities 523 774 Trade and other receivables, net 5 209 Short-term royalty and commercial payment receivables 2,500 - Prepaid expenses and other current assets 1,051 613 Total current assets 87,261 96,973 Property and equipment, net 10 13 Operating lease right-of-use assets 116 200 Long-term royalty and commercial payment receivables 66,575 69,075 Other assets - long term 260 301 Total assets $ 154,222 $ 166,562 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,153 $ 1,072 Accrued and other liabilities 1,026 525 Income taxes payable - 91 Contingent consideration under royalty purchase agreements and commercial purchase payment agreements 3,075 8,075 Operating lease liabilities 133 195 Unearned revenue recognized under units-of-revenue method 1,669 1,641 Preferred stock dividend accrual 1,368 1,368 Total current liabilities 8,424 12,967 Unearned revenue recognized under units-of-revenue method – long-term 10,842 11,685 Long-term operating lease liabilities - 34 Total liabilities 19,266 24,686 Stockholders’ equity: Preferred Stock, $0.05 par value, 1,000,000 shares authorized: 8.625% Series A cumulative, perpetual preferred stock, 984,000 shares issued and outstanding at June 30, 2022 and December 31, 2021 49 49 8.375% Series B cumulative, perpetual preferred stock, 1,600 shares issued and outstanding at June 30, 2022 and December 31, 2021 — — Convertible preferred stock, 5,003 issued and outstanding at June 30, 2022 and December 31, 2021 — — Common stock, $0.0075 par value, 277,333,332 shares authorized, 11,423,823 and 11,315,263 shares issued and outstanding at March 31, 2022 and December 31,2021, respectively 86 85 Additional paid-in capital 1,307,059 1,307,030 Accumulated deficit (1,172,238 ) (1,165,288 ) Total stockholders’ equity 134,956 141,876 Total liabilities and stockholders’ equity $ 154,222 $ 166,562
1 https://ir.rezolutebio.com/news-events/press-releases/detail/299/rezolute-announces-positive-data-from-its-phase-2b-rize2 https://ir.dayonebio.com/news-releases/news-release-details/day-one-announces-positive-initial-data-pivotal-firefly-1-trial 3 XOMA holds economic interests in RZ358 and tovorafenib (DAY101). Should RZ358 receive marketing approval, XOMA is entitled to a high single- to mid teen-digit royalty on global commercial sales. Should tovorafenib receive marketing approval, XOMA is entitled to a mid single-digit royalty on global commercial sales.
