EMERYVILLE, CA – XOMA Corporation (NASDAQ:XOMA), a biotechnology company, announced on Monday that it will change its name to XOMA Royalty Corporation, effective July 10, 2024. This decision was filed with the Secretary of State of Delaware as an amendment to its Amended Certificate of Incorporation.
The rebranding reflects the company's focus and does not alter the voting or other rights of the company's common stock. The common stock will continue to trade on The Nasdaq Global Market under the ticker symbol "XOMA", and the CUSIP number will remain unchanged. Current stock certificates bearing the old company name will still be valid.
The Board of Directors approved the name change without requiring stockholder approval, as permitted by Section 242 of the Delaware General Corporation Law. This strategic move is part of a broader amendment to the company's corporate charter.
The company's business address, management team, and contact information remain the same. The change in the corporate name is purely nominal and has no impact on the company's operations or financial standing.
The amendment to the corporate charter was attached to the SEC filing as Exhibit 3.1, ensuring transparency and compliance with regulatory requirements.
Investors and stakeholders can expect the transition to the new company name to take place seamlessly without any required action on their part. The renaming is a significant step for XOMA as it positions itself in the pharmaceutical industry under the new moniker of XOMA Royalty Corporation.
This announcement is based on a press release statement.
In other recent news, XOMA Corporation, a biotech royalty aggregator, has received significant milestone payments tied to the development of OJEMDA™ (tovorafenib). The company announced the receipt of $8.1 million from Viracta Therapeutics, linked to the sale of a Priority Review Voucher by Day One Biopharmaceuticals™.
Furthermore, the U.S. Food and Drug Administration's approval of Day One Biopharmaceuticals' New Drug Application for OJEMDA™ resulted in another $9 million milestone payment for XOMA. These developments are part of a larger agreement where XOMA initially invested $13.5 million to secure up to $54 million in potential milestones plus mid-single-digit royalties on OJEMDA™.
CEO Owen Hughes anticipates that future royalties from OJEMDA™ will contribute to sustainable free cash flow over time.
Additionally, XOMA has a growing portfolio of assets, including rights to future economics from the progress of underlying therapeutic candidates. These are recent developments in the company's operations.
InvestingPro Insights
As XOMA Corporation transitions to XOMA Royalty Corporation, investors may be curious about the company's financial health and market position. According to InvestingPro data, XOMA boasts a market capitalization of $288.64 million. The company's revenue has grown significantly, with a 73.1% increase in the last twelve months as of Q1 2024, and an even more impressive quarterly revenue growth of 240.96% in Q1 2024. This indicates a robust upward trend in the company's sales, aligning with recent milestones such as the significant payments received for OJEMDA™.
While the company has shown an ability to generate revenue, it's important to note that XOMA is not yet profitable, with a negative P/E ratio of -6.33. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at -9.7, reflecting ongoing challenges to profitability. However, with a gross profit margin of 97.9%, it's clear that XOMA is able to maintain a high level of profitability on its products, which could bode well for future financial results once revenue scales further.
InvestingPro Tips for XOMA highlight that analysts do not anticipate the company will be profitable this year, but they do expect sales growth. Additionally, the company's liquid assets exceed its short-term obligations, suggesting financial stability in the near term. With a moderate level of debt, XOMA operates with a manageable leverage, which could be advantageous as it continues to invest in its portfolio of royalty assets.
For more in-depth analysis and additional InvestingPro Tips, investors can visit https://www.investing.com/pro/XOMA. There are currently six more tips available to help guide investment decisions. To access these valuable insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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