XOMA Acquires Rights to Five Hematology Candidates

April 08, 2019

XOMA Corporation (NASDAQ: XOMA) announced it has agreed to acquire the rights to potential royalty payments and a portion of the potential milestone payments associated with five hematology assets from Aronora, Inc. Three of the assets are anti-thrombotic candidates that are covered by a collaboration with Bayer, a global leader in hematology therapeutics. Two of the collaboration assets are in early to mid-stages of development and the third is a Phase 2 candidate that is subject to an option. In addition, XOMA agreed to acquire the rights to potential royalty payments and a portion of the potential upfront and milestone payments associated with two unpartnered hematology programs from Aronora.

“The transaction diversifies XOMA’s royalty interest portfolio by expanding into hematology indications, and these innovative anti-thrombotic candidates have the potential to address very large market opportunities. The fact that three assets are part of an ongoing collaboration between Aronora and Bayer, a company for whom we have tremendous respect, strengthens our belief in the potential of these therapies to address significant unmet medical needs,” said Jim Neal, Chief Executive Officer at XOMA. “These assets possess the characteristics we have established for our royalty aggregator business model: outstanding development partner, mid-stage to early clinical stage of development, important therapeutic categories, and sizable potential royalty opportunities. Aronora’s expertise in hematology, with an advanced focus on anti-thrombotic monoclonal antibodies, intrigued our team.”

The five royalty interest assets XOMA acquired from Aronora are:

  • Three Bayer collaboration monoclonal antibody (mAb) programs targeting factor XI/XIa: BAY1213790 in Phase 2 clinical development; BAY1831865 in early clinical development; and Aronora’s AB023 (xisomab 3G3) in Phase 2 development; and,
  • Two proprietary hematology programs at Phase 1 and preclinical stage: AB002, a thrombin analog, and AB054, a factor XII mAb, positioned for acute cardiovascular events, medical device associated clots, and/or inflammation.

Under the terms of the agreement, XOMA will make an initial $6 million payment subject to closing conditions defined in the agreement. XOMA will make an additional payment of up to $3 million to Aronora upon fulfillment of certain other conditions. In return, XOMA will receive, on average, low single-digit royalties on future sales of these five products and 10 percent of the milestones associated with each of the assets. In addition, XOMA could pay Aronora sales-based milestones on each asset if XOMA’s royalty receipts related to each program exceed certain thresholds. XOMA expects this transaction to close within the next 90 days.