FX.co ★ XOMA Royalty Owns Economic Interest In Seralutinib With Pulmokine Purchase; Stock Up

XOMA Royalty Corp., a frontrunner in biotechnology royalty aggregation, announced on Monday the acquisition of royalty and milestone interests in the innovative Phase 3 drug seralutinib, focused on treating pulmonary arterial hypertension (PAH), through purchasing Pulmokine Inc. for $20 million in cash.

In pre-market activity on Nasdaq, XOMA Royalty shares saw an increase of 7.32%, reaching $35.90.

Beyond this acquisition, XOMA Royalty has agreed to provide Pulmokine shareholders with additional success-based compensation contingent upon achieving specific milestones. The net royalties are anticipated to fall within the low to mid-single-digit range on commercial sales, alongside retaining up to $25 million from milestone proceeds.

Seralutinib, an inhaled kinase inhibitor, is engineered to target multiple growth factor receptors integral to the pathogenesis of PAH.

In 2017, the licensing rights of seralutinib were obtained by Gossamer Bio, Inc. Meanwhile, in 2024, Gossamer forged a global collaboration and licensing agreement with Chiesi Farmaceutici S.p.A.

Currently, both Gossamer Bio and Chiesi Farmaceutici are working in tandem on the development and marketing of seralutinib. The drug is undergoing a Phase 3 clinical study for PAH, with outcomes anticipated by the fourth quarter of 2025.

Brad Sitko, XOMA Royalty's Chief Investment Officer, remarked, "The acquisition of Pulmokine aligns with our strategy to enrich our royalty and milestone portfolio with seralutinib, a Phase 3 asset boasting a robust mechanistic foundation for PAH. This move also delivers an advantageous scenario for Pulmokine’s founders and shareholders. Furthermore, we foresee seralutinib's application extending to other cardio-respiratory conditions beyond PAH in the coming years."