XOMA Secures Up to $140 Million Financing from Blue Owl, Leveraging VABYSMO® Royalties

XOMA Corporation XOMA, a biotech company known for its extensive antibody royalty portfolio, has recently announced a strategic financing move. The company has successfully raised up to $140 million through non-dilutive, non-recourse financing from funds managed by New York-based asset manager, Blue Owl Capital OWL. This forward-thinking financial arrangement is collateralized by royalties of VABYSMO® (faricimab), a drug acquired by XOMA in 2021 for $14 million.

Strategic Financing Details

In an industry where capital efficiency is paramount, XOMA's deal with Blue Owl Capital sets an example of innovative financing. Unlike traditional dilutive financing methods that can negatively impact shareholders, this arrangement preserves shareholder value while providing the company with a significant capital infusion. The funds are anticipated to be allocated towards stock repurchases and the acquisition of additional royalties and milestone payments, thereby extending XOMA’s growth trajectory and solidifying its status as a prominent royalties aggregator.

Impact on XOMA's Financial Flexibility

The acquired financing from Blue Owl is strategic for XOMA, as it allows the company to take advantage of low-cost capital without sacrificing equity. This positions XOMA to further invest in its unique business model focused on royalty acquisition and management. By leveraging the expected royalties from VABYSMO®, XOMA is not only strategically managing its financial resources but also demonstrating confidence in its royalty assets to potential partners and investors.

Blue Owl Capital's Role

Blue Owl Capital OWL, with its expertise in providing alternative investment solutions, plays a vital role in this financial endeavor. The funds are managed under Blue Owl, utilizing their experience to enable biotech companies like XOMA to secure funding while minimizing risk and avoiding the dilution of shares. This agreement underscores the investment manager's innovative approach in assisting growth-focused companies in achieving their financial and operational goals.

Conclusion

This financing is a strong signal of confidence in XOMA’s business strategy and in the potential of the VABYSMO® royalties. It represents a win-win situation for both XOMA and Blue Owl Capital, where efficient capital utilization meets innovative asset management, paving the way for XOMA’s continued growth in the royalty aggregation space.

Financing, XOMA, BlueOwl, Royalties, Biotech, Acquisition