Xoma acquires royalty, milestone economics for arimoclomol, aldoxorubicin

XOMA Corporation (XOMA) announced it has acquired the royalty and milestone rights associated with two assets from LadRx Corporation: arimoclomol, an oral therapeutic for Niemann-Pick disease type C, and aldoxorubicin, an albumin-linked formulation of doxorubicin. Arimoclomol is a first-in-class investigational therapy that has completed a randomized, placebo-controlled, multinational Phase 2/3 program in Niemann-Pick Disease Type C, an ultra-rare, genetic, progressive neurogenerative disorder. Zevra Therapeutics (ZVRA) has announced its intention to file a New Drug Application for arimoclomol as early as the third quarter of 20231. The second asset is aldoxorubicin, a Phase 2 program that is being developed by ImmunityBio as a potential therapy for pancreatic cancer. The FDA has granted aldoxorubicin Orphan Drug Designation for the treatment of soft tissue sarcoma. Under the terms of the agreement, XOMA will receive a mid-single digit royalty on arimoclomol’s commercial sales upon approval and up to $52.6 million, net, in potential milestone payments. Should aldoxorubicin be approved for marketing, XOMA will receive a mid-single-digit to mid-teens royalty rate on aldoxorubicin commercial sales depending upon the indication, in addition to potential milestone payments of up to $343 million in development and commercial milestones. LadRx will be entitled to receive up to $6 million in certain pre-specified milestones associated with arimoclomol and aldoxorubicin.