With seven commercially available programs, Hughes said the company is building a “diverse and growing source of recurring receipts.” He pointed to early-stage commercial launches for Day One Biopharmaceuticals’ OJEMDA and Zevra Therapeutics’ MIPLYFFA, and noted that both companies submitted marketing authorizations in the European Union in 2025. Hughes also cited Ipsen’s Feb. 26, 2026 announcement of a positive CHMP opinion recommending conditional marketing authorization for OJEMDA in the EU. He added tha ...

Financial Performance - In 2025, XOMA received total cash receipts of $50.5 million, comprising $33.6 million from commercial payments and $16.9 million from milestone payments and other fees[35]. - The company generated a net income of $31.7 million and cash flows from operations of $2.9 million for the year ended December 31, 2025, but has an accumulated deficit of $1.2 billion[152]. - Company received commercial payments of $1.7 million in 2025 and $1.6 million in 2024 under the Aptevo CPPA[57]. - The company has authorized a stock repurchase program allowing for the purchase of up to $50.0 million of its common stock through January 2027[98]. - As of December 31, 2025, the company had repurchased 648,708 shares for a total of $16.1 million[99]. Portfolio and Assets - The company has a diversified portfolio with economic rights to over 120 assets, including seven commercial-stage assets and 14 late-stage therapeutic candidates[38]. - XOMA's portfolio includes assets with significant commercial sales potential, primarily in Phase 1 and 2 development stages[36]. - The company has added 22 milestone and royalty interests to its portfolio since the beginning of 2025[38]. - Company acquired rights to receive potential regulatory and commercial milestone payments of up to $342.7 million and royalties on net sales of aldoxorubicin in the low to mid-teens percentage range for orphan indications[52]. - Company acquired Pulmokine for $20.0 million, with eligibility for low to mid-single-digit royalties on commercial sales of seralutinib[70]. Revenue Streams - The commercial asset VABYSMO® generated $22.5 million in royalties for XOMA in 2025, with a royalty rate of 0.5% on future net sales[40]. - XOMA earned $7.7 million in royalties from OJEMDA in 2025, following its FDA approval in April 2024[50]. - The company is eligible for mid-single-digit royalties on sales of OJEMDA, with additional milestone payments received in 2025 totaling $15 million[49]. - Company paid $22.0 million for 100% of remaining royalties related to XACIATO, with royalties ranging from low to high single digits[58]. - The company is eligible to receive milestone payments of up to $20.8 million related to TAK-079 (mezagitamab) and a 4% royalty on future sales of all products under the Takeda Collaboration Agreement[83]. Acquisitions and Transactions - XOMA's strategy includes acquiring additional milestone and royalty revenue streams, having closed seven transactions since the beginning of 2025, adding approximately $11.7 million in cash and cash equivalents[37]. - Company entered into the Twist RPA for $15.0 million, eligible to receive up to $0.5 billion in milestone payments and low single-digit royalties[75]. - Company acquired an economic interest in DSUVIA for $8.0 million, with potential royalties of 15% on commercial sales[60]. - The company plans to continue business development efforts to acquire potential milestone and royalty streams or companies, with future growth dependent on the availability of suitable products at acceptable prices and terms[175]. - The company may seek to expand market opportunities by acquiring securities from other biopharmaceutical companies, which could involve risks and uncertainties[124]. Risks and Challenges - The company faces competition from other firms seeking to aggregate royalties and provide financing to biotechnology companies, which may impact its market position[103]. - A significant portion of the company's portfolio value is concentrated in a limited number of products, indicating that the failure of any one product could materially impact financial results[112]. - The company may face challenges in integrating acquired assets, which could disrupt operations and dilute shareholder value[121]. - The company is dependent on third parties to achieve development milestones and product sales, which could affect financial performance[112]. - The company may not be able to realize anticipated benefits from acquisitions or in-licensing due to integration risks and unforeseen challenges[176]. Regulatory and Market Conditions - Regulatory approvals for development-stage product candidates are subject to extensive requirements, and unknown problems may lead to marketing restrictions or product withdrawals[129]. - The company’s potential royalty providers may face significant delays in clinical trials due to various factors, including patient enrollment challenges and regulatory requirements[187]. - Changes in regulatory policies under the current U.S. Presidential administration may create uncertainty for the company's licensees and their business operations[148]. - The introduction of generic drugs can significantly reduce sales of branded products, adversely affecting potential milestones and royalties[210]. - The FDA's interpretation of orphan drug exclusivity may change, affecting the competitive landscape for drugs with orphan designation[198]. Intellectual Property - The company and its potential royalty providers rely on patent protection, copyright, trade secret, and trademark laws to safeguard proprietary technology, but these protections may be limited[226]. - The validity and enforceability of issued patents are uncertain, and U.S. patents may be subject to post-grant review procedures that could result in the loss of valuable patent rights[229]. - Inadequate protection of intellectual property rights could hinder the commercialization of technologies or products, negatively impacting sales and market share[230]. - The biotechnology patent landscape is highly uncertain, with evolving legal standards that may affect the validity of patents[230]. - Competitors may design around existing patents or develop superior technologies, impacting the company's market position[233].

XOMA Royalty Corporation (NASDAQ:XOMA) shares are trading higher Wednesday after the company reported fourth-quarter financial results.XOMA Royalty stock is trading at elevated levels today. What’s next for XOMA stock?Q4 EarningsXOMA reported earnings per share of 26 cents, beating the consensus estimate of a 15 cent-loss. In addition, it reported revenue of $13.75 million, beating the consensus estimate of $11.04 million.The company repurchased and retired 648,048 shares for an aggregate of $16.0 million d ...

XOMA Corporation (NasdaqGM:XOMA) Q4 2025 Earnings call March 18, 2026 08:00 AM ET Company ParticipantsBrad Sitko - CIODavid Risinger - Senior Managing DirectorElemer Piros - Managing DirectorJeffrey Trigilio - CFOJuliane Snowden - Investor RelationsOwen Hughes - CEOConference Call ParticipantsPhil Nadeau - Biotech AnalystNone - AnalystOperatorGood day, everyone. My name is Kahealani, and I'll be your conference operator today. At this time, I would like to welcome you to the XOMA Royalty 2025 financial resu ...

Financial Data and Key Metrics Changes - In 2025, XOMA Royalty reported total GAAP income and revenue of $52.1 million, a significant increase from $28.5 million in 2024 [21] - Total cash receipts grew by 9% to $50.5 million, with royalty receipts reaching approximately $34 million, marking a 68% increase compared to 2024 [21] - Full-year GAAP net income was $31.7 million, compared to a GAAP net loss of $13.8 million in 2024 [23] Business Line Data and Key Metrics Changes - The company added 22 assets to its portfolio in 2025, including 7 commercially available programs, enhancing its recurring revenue sources [4][5] - The growth in royalty receipts was driven by VABYSMO and OJEMDA, along with contributions from MIPLYFFA following its approval [21] - Six programs achieved clinical, regulatory, and business development events, leading to approximately $17 million in cash milestone payments [21] Market Data and Key Metrics Changes - The company is seeing promising launches from several commercial-stage programs, with potential geographic expansions anticipated [6] - The portfolio includes 14 programs in registrational stage, indicating multiple catalysts for potential top-line royalty growth in the coming years [8] Company Strategy and Development Direction - XOMA Royalty aims to build a diversified portfolio of biotechnology royalty and milestone assets while maintaining disciplined capital allocation [11] - The company executed a strategic revenue share transaction with Takeda, adding potential royalty and milestone payments across 9 programs [10] - The focus remains on innovative transactions and underappreciated opportunities to expand the portfolio without diluting shareholder value [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for royalty receipts, particularly from VABYSMO, OJEMDA, and MIPLYFFA [32] - The company is approaching an inflection point where royalty receipts alone could cover operating expenses by 2027 [28] - Management remains optimistic about the potential for future cash flow growth from the expanding portfolio and ongoing clinical developments [29] Other Important Information - The unrestricted cash position increased to over $80 million, providing ample resources for future investments [12] - The company maintained a flat share count compared to 2023, avoiding shareholder dilution while achieving positive operating cash flows [13] Q&A Session Summary Question: Growth prospects for royalty receipts on approved products - Management indicated strong growth prospects, particularly from VABYSMO, with double-digit growth and positive expectations for OJEMDA and MIPLYFFA [32] Question: Confidence in Tremfya economic opportunity - Management expressed confidence in the breach claim related to Tremfya, citing historical relationships and potential royalty rates [34] Question: Prioritization of capital deployment between share buybacks and new deals - Management emphasized a balance between returning capital to shareholders and investing in new opportunities, favoring internal investments to enhance cash flow per share [45] Question: Size of the opportunity for Rezolute's program for ersodetug - Management estimated the combined market opportunity for the two indications to be around $1 billion, with a favorable split between congenital and tumor hyperinsulinism [48]

XOMA Corporation (NasdaqGM:XOMA) Q4 2025 Earnings call March 18, 2026 08:00 AM ET Speaker5Good day, everyone. My name is Kahealani, and I'll be your conference operator today. At this time, I would like to welcome you to the XOMA Royalty 2025 financial results and business highlights investor call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, and if you have join ...

CORPORATE PRESENTATION NASDAQ COMMON: XOMA NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO THE ROYALTY AGGREGATOR FOR BIOTECH COMPANIES Q1 2026 DISCLAIMERS Certain statements in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding: future potential monetization opportunities, active transactions with significant financial implications, collaborations poised for s ...

Portfolio receipts: • Achieved over $50 million of cash receipts, including $33.6 million in royalties and $16.9 million milestones, in full year 2025 • Total receipts increased 9% with royalties up 68% versus full year 2024 Business development: Added 22 assets to portfolio, including five programs in Phase 2 or Phase 3 development Stock buyback program: Repurchased and retired 648,048 shares for an aggregate of $16.0 million Company acquisitions: Completed seven acquisitions, accumulating $11.7 million o ...

EMERYVILLE, Calif., March 12, 2026 (GLOBE NEWSWIRE) -- XOMA Royalty Corporation (NASDAQ: XOMA), the biotech royalty announced today it will report fourth quarter and full year 2025 financial results on Wednesday, March 18. The Company will host a webcast on March 18, 2026, at 8:00 am Eastern Time to discuss the results and provide a business update. The webcast will be accessible on the “News & Events” page in the Investors section of XOMA Royalty’s website (www.investors.xoma.com/news-events). A replay of ...

Summary of XOMA Corporation Conference Call Company Overview - **Company**: XOMA Corporation (NasdaqGM:XOMA) - **Industry**: Biotechnology - **Key Leadership**: CEO Owen Hughes, CFO Jeff Trigilio, Chief Investment Officer Brad Sitko Core Points and Arguments - **Portfolio Strategy**: XOMA aims to increase optionality within its portfolio, focusing on building a robust pipeline to withstand the binary nature of biotech. The company has 15 assets in phase 3 development, with 2 recent failures attributed to a higher-than-expected placebo effect. Despite this, the company's valuation remains stable, indicating confidence in its portfolio's potential [6][7]. - **Asset Growth**: Over the past three years, XOMA has added approximately 80 assets while reducing its share count, demonstrating effective capital management and a strategy to leverage future returns without diluting equity [8]. - **Tremfya Economics**: XOMA has a claim related to the commercialization of Tremfya, which it believes is integral to the drug's development. Although a recent arbitration was unsuccessful, the company sees potential in pursuing Johnson & Johnson for royalties, with a market cap of $450-$500 million and significant potential financial upside if successful [9][12][14]. - **Litigation Outlook**: The company is optimistic about the potential for a settlement or favorable ruling in its ongoing litigation, which could provide additional funding for business development and shareholder returns [19][22][27]. - **Takeda Transaction**: In 2025, XOMA completed a significant transaction with Takeda, exchanging one asset for nine additional assets, enhancing its portfolio and optionality. This deal is part of a broader strategy to diversify risk and increase net present value (NPV) [34][35]. Financial Highlights - **2025 Financial Performance**: XOMA reported over $50 million in top-line revenue, with $33 million from royalty receipts. The company achieved free cash flow positivity and repurchased $16 million of stock, indicating strong financial health [42][43]. - **Future Projections**: The company anticipates continued growth in royalties from approved therapies, with expectations of covering operational expenses and financial obligations through royalties alone by 2027. XOMA has over $620 million in net operating losses (NOLs) and capitalized R&D deductions, allowing it to maintain a low effective tax rate [51][52]. Upcoming Catalysts - **Clinical Trials**: XOMA has several upcoming catalysts, including the phase 2b readout for volixibat and a phase 3 trial for ersodetug, both of which could significantly impact the company's financials and market position [79][85]. - **Vabysmo Royalties**: Currently generating approximately $25 million annually from Vabysmo royalties, with expectations for continued growth. The drug's performance will influence the company's ability to pay off loans and return cash flows to shareholders [89][90]. Additional Insights - **Business Model**: XOMA's strategy focuses on acquiring non-dilutive capital and building a diversified portfolio to mitigate risks associated with biotech investments. The company emphasizes the importance of maintaining a flat share count while pursuing growth opportunities [60][64]. - **Market Positioning**: The company recognizes the challenges in biotech, including the unpredictability of clinical success and market dynamics. XOMA aims to leverage its unique assets and partnerships to create sustainable revenue streams [55][56]. This summary encapsulates the key points discussed during the conference call, highlighting XOMA's strategic direction, financial performance, and future opportunities within the biotechnology sector.