EMERYVILLE, CA—Bradley Sitko, Chief Investment Officer at XOMA Royalty Corp (NASDAQ:XOMA), recently increased his holdings in the company. According to a recent filing, Sitko purchased shares of XOMA Royalty's stock totaling $13,974 on January 8, 2025. The transactions were made at prices ranging from $25.60 to $25.90 per share. The insider purchase comes as InvestingPro analysis shows XOMA trading slightly below its Fair Value, with the company maintaining impressive gross profit margins of over 90%.
The purchases included 313 shares of 8.625% Series A Cumulative Perpetual Preferred Stock, acquired directly, and additional shares acquired indirectly through family members. Specifically, 82 shares were bought by Sitko's spouse and 150 shares of common stock were acquired indirectly by his child. With a market capitalization of $296.1 million and strong liquidity indicated by a current ratio of 7.52, XOMA demonstrates solid financial fundamentals. Discover more insights and 6 additional ProTips with InvestingPro.
Following these transactions, Sitko's direct and indirect holdings in XOMA Royalty Corp have increased, reflecting his ongoing investment in the company. Analyst targets suggest significant upside potential, with price targets ranging from $55 to $123 per share.
In other recent news, XOMA Corporation has been making significant strides in its financial landscape. The company's drug candidate, ersodetug (RZ358), has been granted Breakthrough Therapy Designation by the FDA, an endorsement that follows promising results from the Phase 2b RIZE study. This development has led to H.C. Wainwright reaffirming a Buy rating on XOMA shares, with projections of a 10%+ revenue growth potential.
In addition, XOMA has recently acquired Pulmokine Inc., marking its second whole company acquisition in 2024. This acquisition includes a stake in seralutinib, a drug currently under development for treating pulmonary arterial hypertension. This strategic move could potentially bring in low-to-mid single digit royalties for XOMA and up to $25 million in milestone payments.
Meanwhile, XOMA's newly FDA-approved drug, Miplyffa, developed by Zevra Therapeutics for the treatment of Niemann-Pick type C, is expected to provide a mid-single digit royalty and up to $52.6 million in milestone payments. Furthermore, XOMA received an $8.1 million milestone payment from Viracta Therapeutics tied to the sale of a Priority Review Voucher by Day One Biopharmaceuticals.
The company has also announced its rebranding to XOMA Royalty Corporation, a change that does not affect the company's operations or financial standing. These are all recent developments in the company's operations.
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