$XOMA reports FY22 results & royalty strategy to bring potential cash flows.
Mar 9th 2023, 12:37 pm
Analyst Summary: XOMA Corporation, the Biotech Royalty Aggregator, reported its full-year 2022 financial results and provided an operational update on the Company's actions to accelerate XOMA's differentiated biotech royalty and milestone acquisition strategy. The company saw cash receipts from faricimab and Day One's potential approval of tovorafenib could bring in cash from two portfolio assets by the end of 2024. In addition, the company's royalty portfolio is maturing to the point where XOMA has potential for cash flows from two commercial assets in 2024. The Executive Leadership Team additions of Owen Hughes and Brad Sitko bring royalty investment and portfolio management expertise to increase shareholder value from XOMA’s future acquisitions. The company had revenues of $6.0 million in FY 2022, compared to $38.2 million for the prior year, including $2.0 million from Rezolute, $0.8 million from Takeda, $0.8 million from Compugen, and $0.5 million from Sonnet. The cash used in operations during Q4 of 2022 was $3.9 million, and $12.9 million for the year, versus net cash provided by operations in the fourth quarter of 2021 of $30.7 million and $22.7 million for the full year of 2021. The company expects to cover its annual base operating and dividend expenses in 2023 with incoming net cash of over $20 million from a combination of milestones expected this year and royalties. Although the timing of royalties and milestones can be uneven, the potential for cash flows towards covering operating expenses and dividend obligations is strong. XOMA is a biotechnology royalty aggregator with an extensive and growing portfolio, and as of December 31, 2022, had cash and cash equivalents of $57.8 million and no debt on its balance sheet.