SAN DIEGO and EMERYVILLE, Calif., March 23, 2021 /PRNewswire/ -- Viracta
Therapeutics, Inc. (Nasdaq: VIRX), and XOMA Corporation (NASDAQ:
XOMA) announced today XOMA has purchased the potential future
milestones and royalties associated with existing licenses relating
to two clinical-stage drug candidates that were obtained in
Viracta's merger with Sunesis Pharmaceuticals in exchange for an
upfront payment of $13.5 million and
up to $20 million in a
pre-commercialization, event-based milestone. The first
candidate, DAY101 (pan-RAF kinase inhibitor), is being developed by
Day One Biopharmaceuticals, which recently initiated a pivotal
Phase 2 with DAY101 in pediatric low-grade glioma. The second
candidate, vosaroxin (topoisomerase II inhibitor), is being
developed by Denovo Biopharma as a potential treatment for acute
myeloid leukemia.
"This transaction with XOMA offered a unique opportunity for
Viracta to secure meaningful non-dilutive capital and further
strengthen our balance sheet prior to the initiation of our
registration trial for the treatment of relapsed/refractory
Epstein-Barr virus (EBV)-positive lymphoma and our Phase
1b/2 trial in EBV-positive solid
tumors," said Dan Chevallard, Chief
Operating Officer and Chief Financial Officer of Viracta. "We
look forward to evaluating opportunities to strategically deploy
this capital to further develop, expand and diversify our portfolio
and pipeline."
"We congratulate Viracta for their recent successful
merger. XOMA's purpose-built milestone and royalty
acquisition-focused business provides an alternative source of
capital and offers an ideal solution for companies like Viracta to
capitalize on the opportunity to divest non-strategic assets,"
commented Jim Neal, Chief Executive
Officer of XOMA. "We like both Day One and Denovo's
thoughtful clinical development approaches, and we look forward to
seeing them progress."
Under the terms of the agreement, XOMA has acquired potential
royalty economics related to DAY101 and up to $54 million in pre-commercialization, event-based
milestones and high single-digit net royalties on sales related to
vosaroxin and up to $57 million in
regulatory and commercial milestones.
About Viracta Therapeutics, Inc.
Viracta is a
precision oncology company targeting virus-associated malignancies.
Viracta's proprietary investigational drug, nanatinostat, is
currently being evaluated in combination with the antiviral agent
valganciclovir as an oral combination therapy in a Phase 2 clinical
trial for EBV-positive lymphoma. Viracta is pursuing
application of this inducible synthetic lethality approach in other
EBV-associated malignancies, such as nasopharyngeal carcinoma,
gastric carcinoma, and other virus-related cancers. For additional
information please visit www.viracta.com.
About XOMA Corporation
XOMA has built a significant
portfolio of products that are licensed to and being developed by
other biotechnology and pharmaceutical companies. The
Company's portfolio of partner-funded programs spans multiple
stages of the drug development process and across various
therapeutic areas. Many of these licenses are the result of
XOMA's pioneering efforts in the discovery and development of
antibody therapeutics. The Company's royalty-aggregator
business model includes acquiring additional licenses to
partner-funded programs. For more information, visit
www.xoma.com.
Viracta Forward-Looking Statements
This communication
contains "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including,
without limitation, statements regarding milestone payments related
to the transaction; Viracta's clinical development plans and use of
the proceeds from the transaction; and other statements that are
not historical facts. Risks and uncertainties related to
Viracta that may cause actual results to differ materially from
those expressed or implied in any forward-looking statement
include, but are not limited to: Viracta's ability to successfully
enroll patients in and complete its ongoing and planned clinical
trials; Viracta's plans to develop and commercialize its product
candidates, including all oral combinations of nanatinostat and
valganciclovir; the timing of initiation of Viracta's planned
clinical trials; the timing of the availability of data from
Viracta's clinical trials; previous preclinical and clinical
results may not be predictive of future clinical results; the
timing of any planned investigational new drug application or new
drug application; Viracta's plans to research, develop and
commercialize its current and future product candidates; the
clinical utility, potential benefits and market acceptance of
Viracta's product candidates; Viracta's ability to identify
additional products or product candidates with significant
commercial potential; developments and projections relating to
Viracta's competitors and its industry; the impact of government
laws and regulations; Viracta's ability to protect its intellectual
property position; and Viracta's estimates regarding future
expenses, capital requirements and need for additional financing in
the future.
These risks and uncertainties may be amplified by the COVID-19
pandemic, which has caused significant economic uncertainty. If any
of these risks materialize or underlying assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. Additional risks and
uncertainties that could cause actual outcomes and results to
differ materially from those contemplated by the forward-looking
statements are included under the caption "Risk Factors" and
elsewhere in Viracta's reports and other documents that Viracta has
filed, or will file, with the SEC from time to time and available
at www.sec.gov.
The forward-looking statements included in this communication
are made only as of the date hereof. Viracta assumes no obligation
and does not intend to update these forward-looking statements,
except as required by law or applicable regulation.
XOMA Forward-Looking Statements/Explanatory
Notes
Certain statements contained in this press release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, including statements regarding the potential of XOMA's
portfolio of partnered programs and licensed technologies
generating substantial milestone and royalty proceeds over time,
creating additional value for the stockholders, cash sufficiency
forecast, economic outlook, and potential impact of the COVID-19
pandemic. These statements are based on assumptions that may
not prove accurate, and actual results could differ materially from
those anticipated due to certain risks inherent in the
biotechnology industry, including those related to the fact that
our product candidates subject to out-license agreements are still
being developed, and our licensees may require substantial funds to
continue development which may not be available; we do not know
whether there will be, or will continue to be, a viable market for
the products in which we have an ownership or royalty interest; if
the therapeutic product candidates to which we have a royalty
interest do not receive regulatory approval, our third-party
licensees will not be able to market them, and the impact to the
global economy as a result of the COVID-19 pandemic. Other
potential risks to XOMA meeting these expectations are described in
more detail in XOMA's most recent filing on Form 10-K and in other
SEC filings. Consider such risks carefully when considering
XOMA's prospects. Any forward-looking statement in this press
release represents XOMA's views only as of the date of this press
release and should not be relied upon as representing its views as
of any subsequent date. XOMA disclaims any obligation to
update any forward- looking statement, except as required by
applicable law.
XOMA EXPLANATORY NOTE:
Any references to "portfolio"
in this press release refer strictly to milestone and/or royalty
rights associated with a basket of drug products in
development. Any references to "assets" in this press release
refer strictly to milestone and/or royalty rights associated with
individual drug products in development. References to
royalties or royalty rates strictly refer to future potential
payment streams regardless of whether or not they are technically
defined as royalties in the underlying contractual agreement;
further, any rates referenced herein are subject to potential
future contractual adjustments.
As of the date of this press release, all assets in XOMA's
milestone and royalty portfolio are investigational
compounds. Efficacy and safety have not been
established. There is no guarantee that any of these assets
will become commercially available.
Viracta Investor
Contact:
|
Viracta Company
Contact
|
Joyce
Allaire
|
Dan
Chevallard
|
LifeSci
Advisors
|
Viracta
Therapeutics
|
jallaire@lifesciences.com
|
dchevallard@viracta.com
|
(212)
915-2569
|
(858)
771-4193
|
|
|
XOMA
Investor contacts:
|
|
Gitanjali
Jain
|
Juliane
Snowden
|
Solebury
Trout
|
XOMA
|
+1-646-378-2949
|
+1
646-438-9754
|
jojawa@soleburytrout.com
|
juliane.snowden@xoma.com
|
|
|
Media
contact:
|
|
Kathy
Vincent
|
|
KV Consulting &
Management
|
|
+1
310-403-8951
|
|
kathy@kathyvincent.com
|
|
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SOURCE Viracta