Bradley Sitko on biotech financing
From Sara Jane Demy Interviews Brad Sitko at BioFuture 2023 · · Demy-Colton
“For biotech companies where they have an existing partnership in place, they've already created technology licensed it out to someone else to develop it and is expecting to someday in the future receive payments from it like that's capital that's not accessible to them today. So we can provide capital to them today in exchange for those future at-risk payments and allow them to advance their next innovations.”
On , Bradley Sitko, Chief Investment Officer at XOMA ROYALTY CORP, spoke about biotech financing during Sara Jane Demy Interviews Brad Sitko at BioFuture 2023 on Demy-Colton.
About Bradley Sitko
In a September 2024 interview at BioFuture 2023, Bradley Sitko, Chief Investment Officer at Xoma Royalty, discussed the company's royalty model and its role in the biotech financing landscape. Sitko explained that Xoma provides capital to biotech companies in exchange for future at-risk payments from existing partnership deals, describing this as a way to "unlock the innovation of tomorrow using the innovation that was created today." He noted that there are over 600 such partnership deals annually, creating a large market for Xoma's services. Sitko stated that Xoma has completed over a dozen royalty deals and built a portfolio of more than 70 assets. Sitko also commented on the broader biotech environment, saying that companies are "forced to reinvent themselves, to think differently, to spend prudently," which he described as "not a bad thing in the long run." He expressed the view that the industry is "closer to the end of the cycle than to the beginning" and predicted that a true turnaround would occur once there is stability in the macro picture within health and life sciences. Sitko characterized Xoma's approach as offering non-dilutive financing at a stage in a company's lifecycle where it "historically hasn't been available."