Bradley Sitko on non-dilutive financing
From Sara Jane Demy Interviews Brad Sitko at BioFuture 2023 · · Demy-Colton
“Non-dilutive financing has taken a long time for the market to understand, and they've understood it in a more mature way like when products are commercial. Now we're bringing to the market something that they haven't seen before, which is non-dilutive financing at a point in their life cycle when it historically hasn't been available.”
On , Bradley Sitko, Chief Investment Officer at XOMA ROYALTY CORP, spoke about non-dilutive 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."