XOMA Royalty Owns Economic Interest In Seralutinib With Pulmokine Purchase; Stock Up

(RTTNews) - XOMA Royalty Corp. (XOMA), a biotechnology royalty aggregator, Monday announced that it now owns royalty and milestone interest in seralutinib, a Phase 3 drug being tested for pulmonary arterial hypertension or PAH, following the acquisition of Pulmokine Inc. for a $20 million cash payment at closing.

In pre-market trading on the Nasdaq, XOMA Royalty shares were gaining 7.32% at $35.90.

XOMA Royalty will also pay Pulmokine shareholders success-based consideration if certain milestones are met. The firm's net royalties will range from the low to mid-single digits on commercial sales, and it will retain up to $25 million from milestone payments.

Seralutinib is an inhaled small molecule kinase inhibitor that targets multiple growth factor receptors implicated in PAH pathogenesis.

Seralutinib, an inhaled small molecule kinase inhibitor, targets multiple growth factor receptors implicated in PAH pathogenesis.

Pulmokine licensed seralutinib to Gossamer Bio, Inc. in 2017. Gossamer Bio signed a global collaboration and license agreement with Chiesi Farmaceutici S.p.A in 2024.

Seralutinib is being developed and jointly marketed by Gossamer Bio, and Chiesi Farmaceutici.

A Phase 3 study for pulmonary arterial hypertension is underway, with results expected in the fourth quarter of 2025.

XOMA Royalty Chief Investment Officer Brad Sitko said, "We acquired Pulmokine to add seralutinib, a Phase 3 asset with strong mechanistic rationale in PAH, to our growing royalty and milestone portfolio while creating a favorable outcome for Pulmokine's founders and stockholders. In addition, we believe seralutinib has the potential to address several cardio-respiratory conditions beyond PAH in the future."