By Denny Jacob

Xoma will make a $1 million milestone payment to LadRx following the U.S. Food and Drug Administration's acceptance of Zevra Therapeutics' new drug application for arimoclomol.

"We, together with the NPC community, support Zevra's efforts to secure marketing approval for arimoclomol in the U.S. and the EU," said Xoma Chief Executive Brad Sitko.

The biotech royalty aggregator in June paid LadRx a $5 million upfront payment plus a share of future event-based milestones to acquire a mid-single digit royalty on arimoclomol's commercial sales and up to $52.6 million in potential milestone payments from Zevra, among other aspects.

Arimoclomol is a therapy for Niemann-Pick disease type C, a genetic disorder characterized by an ability of the body to transport cholesterol and other lipids inside of cells.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

January 11, 2024 16:35 ET (21:35 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.
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