XOMA Corp. (XOMA) said it will make a $1 million milestone payment to LadRx. The payment is based upon the U.S. Food and Drug Administration's acceptance of Zevra Therapeutics' New Drug Application for arimoclomol, an orally-delivered, first-in-class therapy for Niemann-Pick disease type C or NPC.
Niemann-Pick disease type C is an ultra-rare, progressive, neurodegenerative genetic disorder where those living with NPC lose independence due to physical and cognitive limitations, with key neurological impairments presenting in speech, cognition, swallowing, ambulation, and fine motor skills.
XOMA noted that the FDA has acknowledged receipt of the resubmission and assigned a PDUFA target action date of June 21, 2024.
In June 2023, XOMA announced it had paid LadRx a $5 million upfront payment plus a share of future event-based milestones to acquire a mid-single digit royalty on arimoclomol's commercial sales and up to $52.6 million, net, in potential milestone payments from Zevra.
The transaction also included a mid-single-digit to mid-teens royalty rate on commercial sales of aldoxorubicin depending upon the indication, in addition to potential payments of up to $343 million in development and commercial milestones from ImmunityBio.
XOMA closed Thursday's regular trading at $20.76. In the after-hours trading the stock dropped $1.66 or 8.00%.
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