XOMA Royalty Corp

XOMA is a royalty aggregator that provides capital to biotech companies in exchange for economic rights to future milestone and royalty payments from clinical candidates and approved products. This provides drug developers or marketers with non-dilutive, non-recourse funding. The company aims to generate stockholder value by maintaining a diversified portfolio to mitigate single-asset, binary risk and by operating with a capital-efficient and low corporate cost structure. XOMA has a portfolio of economic rights to future potential milestone and royalty payments associated with over 120 commercial products and pre-commercial therapeutic candidates. In 2017, XOMA transformed its business model to become a royalty aggregator. The company advanced its portfolio by building upon existing out-licensing agreements for proprietary products and platforms through the acquisition of rights to future milestones, royalties, and commercial payments. Currently, XOMA's portfolio is anchored by royalty streams and milestone payments derived from seven commercial-stage assets. In 2025, XOMA received $33.6 million in commercial payments and $16.9 million from milestone payments and other fees, for total cash receipts of $50.5 million. XOMA's royalty aggregator business primarily focuses on early to mid-stage clinical assets, primarily in Phase 1 and 2 development, that are licensed to well-funded sponsors or developers. The company also acquires milestone and royalty revenue streams on late-stage clinical assets and commercial assets designed to address unmet markets or have a therapeutic advantage and long market exclusivity. XOMA expects most future revenue and income to be based on payments received for milestones and royalties associated with these assets. The strategy is to expand the portfolio by acquiring additional milestone and royalty revenue streams associated with product candidates from third parties, aiming for further diversification across therapeutic areas and development stages.