Xoma To Make $1 Mln Milestone Payment To LadRx After FDA Accepts Zevra's NDA For Arimoclomol

(RTTNews) - XOMA Corp. (XOMA), Thursday announaced it will make a $1 million milestone payment to LadRx.

The payment is based upon the U.S. Food and Drug Administration's (FDA) acceptance of Zevra Therapeutics' New Drug Application for arimoclomol, an orally-delivered, first-in-class therapy for Niemann-Pick disease type C (NPC).

"NPC 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. Arimoclomol has the potential to be the first approved therapy designed to slow the progress of this devastating disease," stated Brad Sitko, Chief Investment Officer at XOMA.

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.