XOMA and Viracta Therapeutics Announce Multi-License Milestone and Royalty Monetization Transaction

March 23, 2021

San Diego – Paul Hastings LLP, a leading global law firm, represented Xoma Corporation, a biotechnology and pharmaceutical royalty aggregator, in its multi-license and milestone monetization transaction with Viracta Therapeutics.

Under the terms of the agreement, XOMA has acquired potential royalty economics related to two drug-development programs. 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. 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 milestone in exchange for an upfront payment of $13.5 million and up to $20 million in a pre-commercialization, event-based milestones.

The Paul Hastings team was led by M&A partner Deyan Spiridonov and included partners Andrew Tenzer and Todd Schneider as well as associates Ryan Enchelmayer, Tyler Dodge and Robert Hopkins.

At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.

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