XOMA Royalty Acquires Pulmokine to Bolster Phase 3 Pipeline with Seralutinib
Deal News | Dec 02, 2024 | Globenewswire
XOMA Royalty Corporation, a biotechnology royalty aggregator, has acquired Pulmokine, Inc., along with the economic interests associated with seralutinib, a Phase 3 drug candidate for treating pulmonary arterial hypertension (PAH). The acquisition was completed for $20 million with potential success-based payouts contingent on future developments. XOMA expects to earn low to mid-single digit royalties on seralutinib's sales, on top of up to $25 million in milestone payments. Seralutinib is being developed by Gossamer Bio, Inc., in collaboration with Chiesi Farmaceutici S.p.A. The acquisition highlights XOMA's strategy to accumulate royalties and strategic interests in potential breakthrough biotech developments, seeking to deliver strong returns while supporting advancements in human health. XOMA's current portfolio includes six commercial assets alongside seralutinib and other investigational compounds. The acquisition marks XOMA's second whole-company takeover in 2024, demonstrating its active pursuit of high-value biotech interests.
Sectors
- Biotechnology
- Pharmaceuticals
- Healthcare
- Investment Management
Geography
- United States – XOMA Royalty Corporation is based in Emeryville, California, and the acquisition involves companies operating in the U.S. biotechnology and pharmaceuticals market.
- Italy – Chiesi Farmaceutici, a partner in the development of seralutinib, is an Italian pharmaceutical company, highlighting Italy's involvement in the collaboration.
Industry
- Biotechnology – This industry is relevant as XOMA Royalty, Pulmokine, and their partners are involved in the development and commercialization of biotechnological therapeutics.
- Pharmaceuticals – Seralutinib, the drug involved in this acquisition, is a pharmaceutical compound aimed at treating pulmonary arterial hypertension, part of the broader pharmaceuticals sector.
- Healthcare – This article involves potential therapeutic advancements, aligning with the healthcare industry's focus on treatments for conditions like pulmonary arterial hypertension.
- Investment Management – XOMA Royalty's role as an aggregator of royalty interests aligns it with investment management as it strategically acquires economic interests in pharmaceutical developments.
Financials
- $20 million – The cash payment made by XOMA Royalty for acquiring all outstanding shares of Pulmokine.
- Up to $25 million – Potential milestone payments XOMA Royalty could retain from the seralutinib deal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| XOMA Royalty Corporation | Acquirer | Company | A biotechnology royalty aggregator acquiring economic interests in therapeutic candidates for improving human health. |
| Pulmokine, Inc. | Target Company | Company | A privately held company that licensed seralutinib to Gossamer Bio and was acquired by XOMA Royalty. |
| Gossamer Bio, Inc. | Developer and Co-commercializer | Company | Involved in developing seralutinib in collaboration with Chiesi Farmaceutici. |
| Chiesi Farmaceutici S.p.A. | Co-commercializer | Company | An Italian pharmaceutical company collaborating with Gossamer Bio on seralutinib. |
| Gibson, Dunn & Crutcher LLP | Legal Advisor | Company | Provided legal representation to XOMA Royalty for the acquisition. |