BB, I like the idea of NWBO collecting royalties, but I’d like to see it continue to work with Dr. Liau and Dr. Bosch on the DCVax platform to improve their products and increase their cure rate.
Cash-strapped startups fuel royalty deal flow One company’s woes are another’s opportunity. At least that’s the case for Xoma, a life sciences company that [pivoted from drug development in 2017 to offering upfront cash in exchange for companies’ future royalty payments. With the private and public markets still in a shaky state, many of the startups bustling around San Francisco’s Union Square this week are looking into options like debt and royalty deal sales, and Xoma has had a notable influx of meeting requests this year, executives told STAT. The Xoma team has more than 60 meetings scheduled during this year’s conference alone. For comparison, they held 180 business development meetings in all of 2022.
“The last few years, a lot of the dynamics have changed,” Xoma’s Chief Financial Officer Tom Burns said. “Debt has become a lot more expensive. Equity has become a lot more expensive. It places us in a good position.”
Xoma isn’t the only one: On Monday, Ionis Pharmaceuticals said it is selling a portion of its royalties in Spinraza and pelacarsen to Royalty Pharma, in exchange for $500 million upfront and up to $625 million in milestones