Royalty MonetizationUp to $11 Million

Dec 2016


TRUMENBA®</sup> (neisseria meningitidis serogroup b recombinant lp2086 a05 protein variant antigen and neisseria meningitidis serogroup b recombinant lp2086 b01 protein variant antigen injection, suspension) is an FDA-approved vaccine for meningococcal group B disease (also known as meningitis B) in those 10 through 25 years of age. It was approved in the US in 2014. The Centers for Disease Control and Prevention (CDC) recommends that a meningitis B vaccine may be administered to adolescents and young adults.


XOMA Corporation expressed an interested in raising non-dilutive capital as the company was readying both a corporate restructuring and a re-focus of its corporate strategy. The Company had multiple royalty-bearing licenses from its history as a successful antibody development company. XOMA felt that a non-dilutive transaction would raise key funds at a time when their market capitalization was under $50 million, would help retire a portion of senior debt from their balance sheet and provide capital to advance a promising pipeline asset. Ultimately, HCR purchased royalties from two license agreements for up to $22 million in proceeds, from the sale of one license covering Pfizer’s approved vaccine TRUMENBA®</sup and another license with an undisclosed asset licensed to Dyax (now Shire Pharmaceuticals subsequent to their acquisition of Dyax).

Note: This transaction also appears in the Corporate Financing section under XOMA.