Xoma acquires economic interest in three assets from Dare Bioscience

XOMA (XOMA) has acquired an economic interest in three women’s health assets – XACIATO vaginal gel 2%, Ovaprene and Sildenafil Cream, 3.6% – from Dare Bioscience (DARE), for an upfront payment of $22 million. XACIATO is approved by the U.S. Food and Drug Administration for the treatment of bacterial vaginosis in females 12 years of age and older. In 2022, Dare entered into a license agreement with Organon, which initiated XACIATO commercial marketing activities in the fourth quarter of 2023. Under the terms of the agreement, XOMA will receive the remaining royalties related to XACIATO not already included in Dare’s December 2023 royalty-backed financing agreement, which equates to low to high single-digit royalties on net sales. XOMA also is entitled to potential milestone payments based on the commercial success of XACIATO. Additionally, XOMA has acquired an interest in a potential milestone and a low single-digit synthetic royalty on Ovaprene, as well as a low single-digit synthetic royalty on Sildenafil Cream, 3.6%. Upon achieving a pre-specified return threshold, XOMA will make upside-sharing milestone payments to Dare.