XOMA Secures Up to $140 Million from Blue Owl Capital Funds for Royalty-Backed Financing

XOMA Corporation XOMA, a biotechnology company, has recently leveraged its ownership of VABYSMO^® (faricimab) royalties by obtaining a significant financing arrangement. Through this deal, XOMA will receive up to $140 million in non-dilutive, non-recourse financing from funds managed by Blue Owl Capital OWL, OBDC. This financial move is designed to maximize the value of their $14 million acquisition of VABYSMO^® royalties in 2021, and puts the company in a strategic position for stock repurchases and future royalty and milestone acquisitions.

Strategic Use of Funds

The proceeds from this financing arrangement are expected to bolster XOMA's cash reserves and enable the company to pursue stock repurchases. Additionally, the capital will be used to fuel further acquisitions, allowing XOMA to secure new royalties and milestone payments. This move further consolidates XOMA's standing as a prominent player in the royalty acquisition sector.

Financing Details

The financing provided by Blue Owl Capital is non-dilutive and non-recourse, meaning that XOMA will not have to issue additional shares and the lender cannot pursue the company's other assets if VABYSMO^® fails to generate the expected royalty revenue. This type of financing is particularly attractive for XOMA, as it minimizes risk while tapping into the future potential of their acquired royalties.

Blue Owl Capital Inc., headquartered in New York, NY, specializes in asset management and is a trusted entity in financial circles. The collaboration between XOMA and Blue Owl showcases innovative finance solutions within the biotech industry, enabling growth without compromising equity.

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