XOMA Royalty Corporation has amended its collaboration, originally established in 2006, with Takeda, through a strategic royalty share transaction. Takeda’s royalty and milestone payment obligations to XOMA Royalty related to mezagitamab will be reduced, and XOMA Royalty will receive payments based on low to mid-single-digit royalties and milestones across a basket of nine development-stage assets that are held within Takeda’s externalised assets portfolio.

“We continue to find ways to expand and diversify our royalty and milestone portfolio through creative transactions that are beneficial to both parties. Takeda and XOMA Royalty have a long history of collaboration. By amending our collaboration, we are able to return a portion of our mezagitamab economics to Takeda, while also expanding and diversifying XOMA Royalty’s portfolio across several interesting early- and late-stage programmes,” stated Brad Sitko, Chief Investment Officer, XOMA Royalty.

Prior to amending the collaboration, XOMA Royalty held a mid-single digit royalty and USD 16.25 million in potential milestones associated with mezagitamab. Going forward, XOMA Royalty will retain a low single-digit royalty entitlement on mezagitamab and up to USD 13 million in milestones.

Development-stage assets from Takeda’s externalised assets portfolio are:

Osavampator: Neurocrine Biosciences is developing osavampator, a potential first-in-class, investigational Alpha-amino-3-hydroxy-5-Methyl-4-isoxazole Propionic Acid (AMPA) Positive Allosteric Modulator (PAM) for patients who have inadequate response to treatment for Major Depressive Disorder (MDD).

Volixibat: Mirum Pharmaceuticals is developing volixibat, a minimally absorbed, orally administered investigational therapy designed to selectively inhibit Ileal Bile Acid Transporter (IBAT), for Primary Sclerosing Cholangitis (PSC) and Primary Biliary Cholangitis (PBC).

OHB-607 and five early-stage Oak Hill Bio assets: Oak Hill Bio and their partner are developing OHB-607, a recombinant human IGF-1/IGFBP-3 for the prevention of bronchopulmonary dysplasia in premature infants. Additional Oak Hill Bio assets that have the potential to generate royalties address other high unmet need or rare disease areas.

REC-4881: Recursion Pharmaceuticals is developing REC-4881, an investigational MEK1/2 inhibitor for familial adenomatous polyposis, a rare tumour predisposition syndrome affecting approximately 50,000 people in the US, France, Germany, Italy, Spain and the UK.