XOMA Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>XOMA Corp's Q1 2024 10-Q filing reveals ongoing commercial agreements and subsequent events, including royalty agreements for Ovaprene and Sildenafil Cream.</b>

AI Summary

XOMA Corp (XOMAP) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. XOMA Corp filed a 10-Q report on May 9, 2024, for the period ending March 31, 2024. The filing details various agreements and events, including a Commercial Payment Purchase Agreement with Talphera and All Customers Excluding U.S. Department of Defense on January 12, 2024. A Royalty Purchase Agreement related to Ovaprene and Sildenafil Cream was entered into on April 29, 2024, as a subsequent event. The company also has ongoing agreements such as a License Agreement with Rezolute Inc. for RZ358 products from December 6, 2017. Executive compensation details are not explicitly provided in the provided snippet.

Why It Matters

For investors and stakeholders tracking XOMA Corp, this filing contains several important signals. The filing provides insight into XOMA's ongoing commercial activities and strategic partnerships, such as those with Talphera and Alora Pharmaceuticals, which are crucial for revenue generation and market penetration. Subsequent events like the Royalty Purchase Agreement for Ovaprene and Sildenafil Cream highlight potential future revenue streams or strategic shifts in product development and commercialization.

Risk Assessment

Risk Level: medium — XOMA Corp shows moderate risk based on this filing. The filing contains numerous agreements and events, but lacks specific financial performance data (revenue, net income, etc.) for the current quarter, making a full financial health assessment difficult.

Analyst Insight

Monitor future filings for detailed financial performance metrics and the impact of the disclosed commercial and royalty agreements on revenue and profitability.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-09 — Filing Date (10-Q filing)
• 2024-01-12 — Agreement Date (Talphera Commercial Payment Purchase Agreement)
• 2024-04-29 — Agreement Date (Dare Royalty Purchase Agreement (Subsequent Event))
• 2017-12-06 — Agreement Date (Rezolute Inc. License Agreement)

Key Players & Entities

• XOMA Corp (company) — Filer of the 10-Q report
• Talphera (company) — Party to a Commercial Payment Purchase Agreement
• U.S. Department of Defense (company) — Customer in a Commercial Payment Purchase Agreement
• Alora Pharmaceuticals (company) — Party to an Asset Purchase Agreement and Marketing Agreement
• Rezolute Inc (company) — Party to a License Agreement
• Takeda Pharmaceutical Company Limited (company) — Party to a Collaboration Agreement
• Dare (company) — Related to Ovaprene and Sildenafil Cream
• 2024-01-12 (date) — Date of Commercial Payment Purchase Agreement

FAQ

Risk Factors

• Dependence on Product Sales and Royalties [medium — financial]: The company's revenue is significantly dependent on the sales of its products and royalty payments from its partners, making it vulnerable to market demand and partner performance.
• Regulatory Approval Risks [high — regulatory]: The development and commercialization of pharmaceutical products are subject to stringent regulatory approvals, and delays or failures in obtaining such approvals can adversely affect the company's business.
• Competition in the Pharmaceutical Market [high — market]: The pharmaceutical industry is highly competitive, with numerous companies developing similar products, which could impact XOMA's market share and pricing power.

Key Financial Figures

• $0.0075 — ge on which registered: Common Stock, $0.0075 par value XOMA The Nasdaq Global Ma
• $0.05 — ve Perpetual Preferred Stock, par value $0.05 XOMAP The Nasdaq Global Market De

Filing Documents

• xoma-20240331x10q.htm (10-Q) — 2022KB
• xoma-20240331xex10d2.htm (EX-10.2) — 406KB
• xoma-20240331xex10d3.htm (EX-10.3) — 31KB
• xoma-20240331xex31d1.htm (EX-31.1) — 10KB
• xoma-20240331xex31d2.htm (EX-31.2) — 10KB
• xoma-20240331xex32d1.htm (EX-32.1) — 8KB
• 0001558370-24-007470.txt (&nbsp;) — 10936KB
• xoma-20240331.xsd (EX-101.SCH) — 97KB
• xoma-20240331_cal.xml (EX-101.CAL) — 59KB
• xoma-20240331_def.xml (EX-101.DEF) — 496KB
• xoma-20240331_lab.xml (EX-101.LAB) — 699KB
• xoma-20240331_pre.xml (EX-101.PRE) — 678KB
• xoma-20240331x10q_htm.xml (XML) — 1664KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 52 PART II OTHER INFORMATION 52 Item 1.

Legal Proceedings

Legal Proceedings 52 Item 1A.

Risk Factors

Risk Factors 52 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3. Defaults Upon Senior Securities 54 Item 4. Mine Safety Disclosures 54 Item 5. Other Information 54 Item 6. Exhibits 55

Signatures

Signatures 57 2 Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS Abbreviations Definition 2010 Plan the Company's 2010 Long Term Incentive and Stock Award Plan, as amended 2018 Common Stock ATM Agreement At The Market Issuance Sales Agreement with HCW dated December 18, 2018 2021 Series B Preferred Stock ATM Agreement At The Market Issuance Sales Agreement with B. Riley dated August 5, 2021 AAA Assignment and Assumption Agreement ACA The Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010 Affimed Affimed N.V. Affitech Affitech Research AS Affitech CPPA the Company's Commercial Payment Purchase Agreement with Affitech dated October 6, 2021 Agenus Agenus, Inc. and certain affiliates Agenus RPA the Company's Royalty Purchase Agreement with Agenus dated September 20, 2018 Alora Alora Pharmaceuticals, LLC Anti-TGF Antibody License Agreement the Company's License Agreement with Novartis dated September 30, 2015 April 2022 Letter Agreement the Letter Agreement to Officer Employment Agreement dated August 7, 2017, between XOMA Corporation and Thomas Burns dated April 1, 2022 Aptevo Aptevo Therapeutics Inc. Aptevo CPPA the Company's Payment Interest Purchase Agreement with Aptevo dated March 29, 2023, referred to herein as "Aptevo Commercial Payment Purchase Agreement" or "Aptevo CPPA" Aronora Aronora, Inc. Aronora RPA the Company's Royalty Purchase Agreement with Aronora dated April 7, 2019 AstraZeneca AstraZeneca plc ASC Accounting Standards Codification ASC 310 ASC Topic 310, Receivables ASC 326 ASC Topic 326, Financial Instruments – Credit Losses ASC 450 ASC Topic 450, Contingencies ASC 606 ASC Topic 606, Revenue from Contracts with Customers ASC 805 ASC Topic 805, Business Combinations ASC 815 ASC Topic 815, Derivatives and Hedging ASC 842 ASC Topic 842, Leases ASU Accounting Standards Update Bayer Bayer Pharma AG Bioasis Bioas

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS XOMA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) March 31, December 31, 2024 2023 (1) ASSETS (unaudited) Current assets: Cash and cash equivalents $ 136,225 $ 153,290 Short-term restricted cash 160 160 Short-term equity securities 413 161 Trade and other receivables, net 3 1,004 Short-term royalty and commercial payment receivables 9,819 14,215 Prepaid expenses and other current assets 270 483 Total current assets 146,890 169,313 Long-term restricted cash 6,016 6,100 Property and equipment, net 40 25 Operating lease right-of-use assets 364 378 Long-term royalty and commercial payment receivables 65,577 57,952 Other assets - long term 533 533 Total assets $ 219,420 $ 234,301 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,515 $ 653 Accrued and other liabilities 1,299 2,768 Contingent consideration under RPAs, AAAs and CPPAs 3,000 7,000 Operating lease liabilities 55 54 Unearned revenue recognized under units-of-revenue method 2,159 2,113 Preferred stock dividend accrual 1,368 1,368 Current portion of long-term debt 6,144 5,543 Total current liabilities 15,540 19,499 Unearned revenue recognized under units-of-revenue method – long-term 6,692 7,228 Long-term operating lease liabilities 319 335 Long-term debt 114,528 118,518 Total liabilities 137,079 145,580 Commitments and Contingencies (Note 10) 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 March 31, 2024 and December 31, 2023 49 49 8.375 % Series B cumulative, perpetual preferred stock, 1,600 shares issued and outstanding at March 31, 2024 and December

View Full Filing

View this 10-Q filing on SEC EDGAR