In a recent move, Owen Hughes, the Chief Executive Officer of XOMA Royalty Corp (NASDAQ:XOMA), sold 21,881 shares of the company’s common stock, generating approximately $655,335. The shares were sold on November 13, 2024, at a weighted average price of $29.95 per share, with individual transaction prices ranging from $29.93 to $30.38.
This transaction was part of a broader strategy to satisfy tax withholding obligations incurred upon the settlement of Performance Stock Units (PSUs). Following this sale, Hughes retains direct ownership of 34,979 shares of XOMA's common stock. Additionally, Hughes exercised options on November 11, 2024, acquiring 53,360 shares of common stock at no cost, which were also related to the PSUs.
XOMA Royalty Corp, based in Emeryville, California, focuses on pharmaceutical preparations. The company continues to navigate the complexities of the life sciences sector, with Hughes playing a significant role in its leadership and strategic direction.
In other recent news, XOMA Corporation, soon to be known as XOMA Royalty Corporation, has made notable strides in its financial journey. The company received FDA approval for Miplyffa (arimoclomol), a treatment for Niemann-Pick type C (NPC) disease, marking a significant milestone. This approval is expected to bring in a mid-single digit royalty and up to $52.6 million in milestone payments for XOMA.
The company also 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™. Following the FDA's approval of Day One Biopharmaceuticals' New Drug Application for OJEMDA™, XOMA secured an additional $9 million milestone payment.
In light of these developments, H.C. Wainwright maintained a Buy rating on XOMA shares and raised the price target to $117. 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.
InvestingPro Insights
XOMA Royalty Corp's recent stock performance and financial metrics offer additional context to CEO Owen Hughes' recent stock transactions. According to InvestingPro data, XOMA has seen a remarkable 84.76% price total return over the past year, significantly outperforming many of its peers in the pharmaceutical sector. This strong performance aligns with the company's impressive revenue growth, which stood at 389.82% for the last twelve months as of Q3 2024.
Despite the robust top-line growth, InvestingPro Tips indicate that analysts do not anticipate the company will be profitable this year. This insight provides perspective on Hughes' decision to sell shares for tax purposes, as it suggests the company may be prioritizing growth over immediate profitability.
Another relevant InvestingPro Tip highlights XOMA's impressive gross profit margins. The company boasts a gross profit margin of 90.58% for the last twelve months as of Q3 2024, reflecting strong pricing power or efficient cost management in its royalty business model.
It's worth noting that XOMA operates with a moderate level of debt and its liquid assets exceed short-term obligations, indicating a solid financial position. These factors may contribute to the company's ability to focus on long-term growth strategies.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for XOMA, providing a deeper understanding of the company's financial health and market position.
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