Good morning, everyone, and welcome to the H.C. Wainwright 26th Annual Global Investment Conference. My name is Lander, and I'm a biotech equity research associate at the firm. We're pleased to have you with us today, and it is now my pleasure to introduce our next presenter. Please join me in welcoming Brad Sitko, Chief Investment Officer of XOMA Royalty, a biotech royalty aggregator of economic rights derived from pre-commercial drug candidates and commercial therapies. Brad, over to you.
Excellent. Thank you, Lander. Pleasure to be here this morning. Thank you to H.C. Wainwright for hosting us today. I look forward to introducing you to the XOMA business model and providing updates as to what we're doing with this biotech royalty aggregation. So the XOMA business model is quite simple in what we do. Now, the tech that we're working with is not as simple. So what do we do? Fundamentally, we aggregate biotech royalties and milestones at a stage generally within clinical development, so while partnered programs are under development. So we buy milestones and royalties, and we do that by analyzing, deeply analyzing the science behind the program, believing in the underlying commercial potential, and structuring it in an appropriate way to build a large, aggregated basket of royalties and milestones to deliver our investors long-term, sustained cash flows.
Over time, building the business model, what we've developed is something that's incredibly scalable. With a team of less than 15 people, annual spend of less than $20 million a year, and a business model that can perpetuate, we've created this, this model that's set for growth. Since we've moved to this business model in 2017, we've collected over $120 million of milestones from our partners. We've developed a pipeline of assets of 60 or more, including the new deals that we're adding regularly through our business development, and we've also developed a late-stage and commercial, basket of royalties, including over six programs that are in phase III, one that's at the FDA currently, and five cash-flowing royalties today. The business model is simple. We want to create the compounding effect. We have increasing cash receipts over time from our royalties.
We keep that pair that with a low expense base, a low share count, which generates highly leveraged EPS over time that can grow. We're nearing our inflection point, where we'll be cash-flow positive. We're growing our basket and portfolio of paying royalties to achieve to that point, and to have a point where we'll have sustained profitability, and that will be where any of the excess cash flows we can reinvest into new opportunities going forward, new royalties, new milestones. Recently in our portfolio, we had the approval of the Ojemda royalty, so Day One's tovorafenib, for a pan-RAF inhibitor for pediatric low-grade glioma, which is something that we acquired those economic rights back in twenty twenty-one for $13.5 million. To date, we've received over $22 million, and that was prior to any commercial sales of the drug.
We have an additional $32 million of milestones, and we're entitled to a low single or mid-single-digit royalty on Ojemda sales. Right, so that, this launch is progressing. Recent news has come out that the market may be larger than anticipated, that within the 1,500 docs, there's 200 that are driving the bulk of the prescriptions. 100 have written to date. We're seeing the market growing great based on claims. How does XOMA fit in this royalty monetization space? Most people are familiar with the upper-right portion of the slide, the royalty pharmas, the DRIs, the healthcare royalties, and the like, where they're writing large check sizes on commercial royalties.
What this has created is a gap in the market, where smaller biotech companies who are looking for check sizes, generally sub $25 million, haven't had non-dilutive financing options available to them. And because of the public company structure that we're in, we're able to have patience, where we can take on both risk and time to be patient and acquire these royalties while they're in clinical development. We don't have an end-of-fund life to contend with, and what that's created for us is a swim lane of calmer waters versus the frothier waters on the upper-right side. And this, especially in a market like we're in today, where companies are struggling to access capital, has created new opportunities for the XOMA team.
Long term, we believe that this model is differentiated from other royalty, biotech royalty aggregators, in part because we create DCF value to our portfolio. That 70-asset portfolio is gonna grow and mature, and you're gonna be able to see programs move from phase I to phase II, to phase III, to regulatory, and then eventually commercial. Whereas many of the other royalty models today, the pipeline value is what's coming in the door next. So we believe, for our investors, we offer visibility and growth and a differentiated business model. Our time in the market is now. As we all know, the equity markets have struggled. There's decrease in volume, the cost of debt in a rising rate environment has increased. Partnering has slowed down in general in anticipation of the upcoming elections.
M&A volume has not hit in the way that people were expecting. So this creates for royalty monetization in general and alternative financing, ways where we can minimize equity dilution for the companies. I don't think there's many companies that like their share price where it's at. We can unlock latent value, so assets that the market generally isn't valuing, we can put a value to those, and it's a very capital-efficient model. Our total addressable market, we refill the pipeline every year. There's about four to five hundred licensing transactions annually. You know, some global, some U.S., some worldwide, some regional. So and these licensing transactions generally consist of an upfront payment, a milestone, and a royalty obligation. So those are what we will generally acquire. For those unfamiliar with royalty monetization, we've tried to simplify this.
First, at the bottom part of the slide, you can see where there's a license agreement in place between a biotech company and a pharma partner, where IP is exchanged for future payments, usually an upfront clinical development milestones, commercial milestones, and royalties. XOMA will work with a company to come in, and we'll monetize those future at-risk payments for either cash today or a series of cash and structured earn-outs, and create an economic arrangement where we are then the recipient of those future economics. Our ideal royalty asset is one which we believe has high royalty potential, so sales times royalty rate is the royalties that we receive.
So something that has clear unmet need or differentiated space in the market, a long duration of market exclusivity, so where either the IP or the regulatory exclusivity gives it long duration of cash flows, a marketer or developer who can take the program forward, and we can be certain will believe and invest in the program. And then generally, we prefer mid or early clinical-stage assets where we believe that we can find the right asymmetric risk-reward profile. We'll invest across therapeutic areas and modalities, so we're agnostic in the types of approaches that we take. This is a snapshot of some of the top assets within our portfolio. As I mentioned, the portfolio today is over seventy. These are some of the more mature, the commercial, the regulatory, and the phase III assets.
We have royalties on Roche's Vabysmo for wet AMD and DME, Ojemda for pediatric low-grade glioma, XACIATO, IXINITY, and DSUVIA, as well. At the FDA currently is Zevra's arimoclomol for Niemann-Pick type C, an ultra-orphan disorder, with a PDUFA date coming up in end of September. So the idea for our investors is, you know, like drug development, we don't always know what will work, what won't work, what the surprises are gonna be. So we create a diversified risk aggregated basket, where we can create multiple shots on goal. So that's the important part. We kind of take the binary risk out of biotech through our aggregated portfolio. How we construct the portfolio of assets, we think of it in different ways.
One, we do risk-mitigated acquisitions, so we think about those that we believe have a high probability of success and a high reward profile. We create a diversified basket, diversified by indication, mechanism, modality, and most important, we structure our transactions in a way where, because we're acquiring these royalty assets so early, we're looking to get our initial upfront capital back in a risk-mitigated way. So the. For the first slide, that science and that structuring is incredibly important to our future royalty acquisitions. An example of this is back in October of twenty twenty-one, while the program was still in clinical development, we spent $14 million to acquire the, a royalty entitlement on Roche's Vabysmo, then faricimab.
And back in December of last year, we turned this into $140 million by doing a royalty-backed loan with Blue Owl, allowing us to bring capital from that initial acquisition forward. Our goal is to reward our shareholders, so we did this by, shortly after, announcing a share repurchase program. If you recall, within that business model of increasing cash receipts, keeping a low expense base and a low share count, we believe that share repurchase is one way to continue to leverage the EPS for each individual share. And then it also enabled us to have a fuller balance sheet for future royalty acquisitions that we're continuing to deploy capital going forward. Just a quick snapshot of a couple transactions.
We bought the Ojemda royalty out of a reverse merger, so this was an asset that was underappreciated through the reverse merger. We also, at the same time, acquired a high single-digit royalty in vosaroxin. This is part of our aggregated risk, right? We don't always know what's gonna progress, what's gonna make it forward. This is aggregated risk. Back in June of last year, we acquired royalties on arimoclomol, so we paid $6 million upfront to LadRx for a mid-single-digit royalty on arimoclomol, plus milestones, and acquired a royalty on aldoxorubicin. You know, there's been estimates that if arimoclomol is approved, this market could be $300 million-$500 million in terms of peak sales. So you think do the back of the envelope math on that, and that, again, was a $6 million acquisition upfront.
For IXINITY, acquired a small commercial royalty that has long duration in hemophilia B. In January of this year, acquired a royalty from Talphera on DSUVIA, $8 million upfront to entitle us to a 15% commercial royalty, and anywhere from a 37.5%-75% royalty on any Department of Defense sales. So DSUVIA is a sufentanil sublingual tablet that can be actively used within the field setting or wartime scenarios. Earlier this year, we, with Daré Biosciences, for $22 million upfront, acquired a commercial royalty on XACIATO for bacterial vaginosis, a phase III royalty for Ovaprene, and a phase III royalty for synthetic royalty for sildenafil cream. Again, looking at what could be first-in-class or best-in-class assets to further build that royalty portfolio, that diversified royalty portfolio.
As many people know, women's health is generally underappreciated in this market, so this was an opportunity to build our late-stage portfolio. We, much like you, look at events coming down the pipeline for our partners, critical events for this year and next year. You can see which ones have been achieved to date with the green checks: the continued successful launch of Vabysmo by Roche, which is the fastest launch in Roche's history. The approval, and now watching the launch of Day One's Ojemda. IXINITY, earlier this year, got the pediatric label expansion.
We're seeing the early launch of XACIATO by Organon, the relaunch by Alora for DSUVIA, and then the data events that we're seeing around partner's Rezolute, which for congenital hyperinsulinism, another rare disease, which this morning was just announced that the partial clinical hold was removed, and they'll be able to enroll patients in the US. The phase III start for Takeda's mezagitamab for ITP, and other clinical events around Daré Bioscience, Ovaprene, and then earlier phase II data. We'll continue to be active in business development, building our pipeline and continuing to create that diversified risk basket. Ultimately, the way we view this is it's ultimately a math problem. The larger the portfolio, the more shots on goal, the more opportunity for success for our patient investors.
Key one that we're watching will be obviously December, or sorry, September twenty-first, which is the PDUFA date for arimoclomol that we talked about with Zevra. Skip this slide. Other things, XOMA has been creative this year. We've added $9.5 million of non-dilutive cash. We acquired Kinnate earlier this year. Part of that was to help wind down the company. We acquired their IP portfolio and can actively out-license it to create more shots on goal for our investors. So using M&A as a tool to do non-dilutive financing, create new opportunities for additional assets within the portfolio. From the financial highlights, strongest balance sheet in XOMA's history. XOMA has been an operating company since 1981, public since 1984.
We've received, again, 120 milestones to date, $120 million in milestones since our pivot to the royalty aggregation business model in 2017, with a portfolio of over $1 billion in potential milestones. We have five assets today generating royalty receipts, potential of an additional royalty stream in 2024 with Zevra, and we keep a very stable and disciplined expense base, so that, as you think about that cash flow, the cash flow growth can reward our bottom line. As I mentioned before, we announced a share repurchase program in additional ways to deliver shareholder value. There's three different ways where investors can participate within XOMA. One is our common stock, and two are perpetual preferreds, which yield about 8.5%, across both of the instruments.
Been one of the best performing perpetual preferreds that have been issued. The team is a diverse team of investors, scientists, transactionalists. We keep our team lean, expand through a network of consultants around us. Board of Directors has been incredibly helpful, from investors, to operators, to deal makers, to transactionalists. The time for XOMA is now. We have, as I mentioned, the inflection point forthcoming with cash flow positivity that's durable. We have a very efficient and scalable business model. We're competitively differentiated in the royalty aggregation space, and our goal is to deliver consistent, strong shareholder returns through our royalty portfolio. So any questions?
How would you differentiate yourself from Ligand?
So I think Ligand and XOMA have taken different approaches in the market. I think Ligand's focused on some larger check sizes, XOMA, and being later stage, more generally phase three in their approach. XOMA is generally focused on smaller check sizes and willing to go earlier.
Thank you for the updates, Brad. Congrats on the progress of the portfolio. Please feel free to reach out to management during the conference if you have any questions, and thanks again to XOMA from H.C. Wainwright.
Excellent. Thank you.