Xoma purchases mezagitamab royalty, milestone rights for up to $30M

XOMA (XOMA) Royalty and BioInvent International announced XOMA Royalty has purchased the future mezagitamab royalty and milestone interests held by BioInvent for $20M at closing, with a total transaction of up to $30M. The future royalty and milestone economics interest in mezagitamab originated from a 2003 cross-licensing agreement covering XOMA Royalty’s legacy bacterial protein expression technology and BioInvent’s n-CoDeR antibody library. Under the terms of XOMA Royalty’s purchase of BioInvent’s economic interest in mezagitamab, XOMA Royalty paid $20M to BioInvent at closing and will pay an additional $10M upon mezagitamab achieving a specific pre-defined regulatory milestone associated with receiving marketing approval in the IgA nephropathy indication from the U.S. Food and Drug Administration. With its existing entitlement, plus the newly acquired economics from BioInvent, XOMA Royalty will be entitled to milestones of up to $16.25M from Takeda and mid-single digit royalties on future mezagitamab commercial sales.