Xoma expands commercial royalty, milestone portfolio with DSUVIA acquisition

XOMA Corporation (XOMA) announced it has acquired an economic interest in DSUVIA from Talphera (TLPH) for $8 million. DSUVIA was approved in 2018 by the U.S. Food and Drug Administration, FDA, for use in adults in certified medically supervised healthcare settings. In April 2023, Talphera divested DSUVIA to Alora Pharmaceuticals for an upfront payment, a 15 percent royalty on commercial net sales, a 75 percent royalty on net sales to the U.S. Department of Defense, and up to $116.5 million in milestone payments. “The Talphera transaction is consistent with XOMA’s business model of acquiring royalty economics that we believe offer attractive and asymmetric risk/reward profiles. DSUVIA is an important sublingual, single use pain management option addressing moderate-to-severe acute pain when used in actively supervised medical settings. We believe Alora has the resources and expertise to relaunch and successfully commercialize DSUVIA within its expansive pain management portfolio,” stated Brad Sitko, Chief Investment Officer at XOMA. “XOMA was able to structure an attractive, non-dilutive royalty solution as an alternative to traditional financing as Talphera repositions its strategy for future growth.” Under the terms of the agreement, XOMA will receive 100 percent of all royalties and milestones related to DSUVIA sales until the Company receives $20 million. Thereafter, XOMA fully retains the 15 percent royalty associated with DSUVIA commercial sales, and the 75 percent royalties generated from DoD purchases will be shared equally between XOMA and Talphera, as will the remaining $116.5 million in potential milestone payments due from Alora Pharmaceuticals.