Thomas M. Burns, the Senior Vice President, Finance & CFO of XOMA Royalty Corp (NASDAQ:XOMA), recently sold shares in the company. According to a Form 4 filing with the Securities and Exchange Commission, Burns sold 9,775 shares of XOMA common stock on November 13, 2024. The shares were sold at a weighted average price of $29.94, resulting in a total transaction value of approximately $292,663.
These shares were sold to satisfy tax withholding obligations incurred from the settlement of Performance Stock Units (PSUs). Prior to this transaction, Burns had acquired 17,773 shares of common stock on November 11, 2024, through a transaction involving the exercise of PSUs, although these were acquired at no cost.
Following these transactions, Burns directly owns 14,553 shares of XOMA common stock and holds additional shares indirectly through a 401(k) plan.
In other recent news, XOMA Corporation, soon to be known as XOMA Royalty Corporation, has experienced significant financial developments. The FDA's recent approval of Miplyffa (arimoclomol) for the treatment of Niemann-Pick type C (NPC), a rare disease, marks a significant milestone for XOMA. The drug, developed by Zevra, could represent a $15 million royalty opportunity for XOMA if it treats 1,000 patients at its peak with the ultra-orphan drug pricing of $300,000 per year.
Additionally, XOMA has reported an $8.1 million milestone payment from Viracta Therapeutics linked to the sale of a Priority Review Voucher by Day One Biopharmaceuticals. This is part of a larger agreement where XOMA initially invested $13.5 million to secure up to $54 million in potential milestones plus mid-single-digit royalties on OJEMDA™.
H.C. Wainwright has raised its price target for XOMA shares to $117, maintaining a Buy rating. The firm's decision reflects a positive view of XOMA's financial future, influenced by recent major transactions, including deals involving products like Vabysmo and Ojemda. Lastly, XOMA announced its rebranding to XOMA Royalty Corporation, a change that won't affect the company's operations or financial standing. These are all recent developments in the company's operations.
InvestingPro Insights
To provide additional context to Thomas M. Burns' recent stock transactions, let's examine some key financial metrics and insights from InvestingPro for XOMA Royalty Corp.
XOMA's market capitalization stands at $356.19 million, reflecting its current valuation in the market. The company has demonstrated impressive revenue growth, with a 389.82% increase over the last twelve months as of Q3 2024. This substantial growth is further emphasized by a remarkable 767.11% quarterly revenue growth in Q3 2024.
One of the InvestingPro Tips highlights XOMA's impressive gross profit margins. Indeed, the data shows a gross profit margin of 90.58% for the last twelve months, indicating strong pricing power and efficient cost management in its core operations.
Another InvestingPro Tip notes that XOMA operates with a moderate level of debt, which could provide financial flexibility for future growth initiatives or to weather potential market downturns.
Despite these positive indicators, it's worth noting that XOMA is not currently profitable, with a negative operating income of $15.4 million over the last twelve months. This aligns with another InvestingPro Tip suggesting that analysts do not anticipate the company to be profitable this year.
Interestingly, XOMA has shown a high return over the last year, with a one-year price total return of 84.76% as of the latest data. This performance may have influenced the timing of Burns' stock transactions.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for XOMA, providing a deeper understanding of the company's financial health and market position.
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