Xoma completes sale of Kinnate Pipeline assets for up to $270M

XOMA (XOMA) Royalty announced it has completed the sale of all five pipeline assets that were acquired when XOMA Royalty closed its acquisition of Kinnate Biopharma on April 3, 2024. Pursuant to the terms of the related asset purchase agreements, XOMA Royalty is entitled to upfront and milestone payments of up to $270M and future royalty payments at rates ranging from the low single digits to mid-teens on commercial sales tied to these assets. “In addition to distributing the majority of Kinnate’s cash balance to its existing shareholders upon closing of the acquisition, we have also created the potential for additional upside by selling all of Kinnate’s early-stage pipeline products,” stated Owen Hughes, Chief Executive Officer of XOMA Royalty. “Per the terms of the Kinnate acquisition agreement, legacy Kinnate shareholders will receive, by way of their Kinnate Contingent Value Rights, 85% of payments received by XOMA Royalty prior to April 2, 2029, including all related upfront, milestones, and royalty payments, related to these Kinnate assets.”