XOMA Royalty (XOMA) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of a loss of $0.26 per share. This compares to loss of $0.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 123.08%. A quarter ago, it was expected that this drug developer would post a loss of $0.29 per share when it actually produced a loss of $0.46, delivering a surprise of -58.62%.Over the last four quarters, the ...

Financial Performance - Net income for the three months ended March 31, 2025, was $2.4 million, compared to a net loss of $8.6 million for the same period in 2024[245]. - Total income and revenues for the three months ended March 31, 2025, were $15.9 million, an increase of $14.4 million from $1.5 million in the same period in 2024[252]. - Income from purchased receivables under the EIR method for the three months ended March 31, 2025, included estimated income of $5.8 million related to sales of VABYSMO[253]. - Total other (expense) income, net for Q1 2025 was $(95,000), a decrease of $2.1 million compared to $1.96 million in Q1 2024[262]. - Investment income decreased by $0.8 million to $0.9 million in Q1 2025 due to decreased balances and market interest rates[262]. - Net cash provided by operating activities was $2.2 million in Q1 2025, an increase of $7.1 million compared to $(4.9 million) in Q1 2024[265]. - Total cash receipts for Q1 2025 were $17.96 million, up from $9.77 million in Q1 2024, driven by increased royalties from VABYSMO[267]. Expenses - R&D expenses for the three months ended March 31, 2025, were $1.3 million, a significant increase from $33 thousand in the same period in 2024[258]. - G&A expenses for the three months ended March 31, 2025, were $8.1 million, a decrease of $0.4 million from $8.5 million in the same period in 2024[259]. - The company expects to incur $0.4 million in incremental costs related to its new headquarters lease in Emeryville, California[272]. Cash and Debt - Cash and cash equivalents as of March 31, 2025, were $90.3 million, down $11.4 million from $101.7 million as of December 31, 2024[264]. - The outstanding principal balance under the Blue Owl Loan Agreement was $113.6 million as of March 31, 2025, with an annual interest rate of 9.875%[274]. Milestones and Partnerships - The company completed the sale of all five pipeline assets from the Kinnate Biopharma acquisition, eligible for up to $270 million in upfront and milestone payments[246]. - A $3.0 million milestone payment was earned from Takeda for the first patient dosed in its Phase 3 clinical trial of mezagitamab (TAK-079)[248]. - The company expects future revenue and income to be primarily based on milestone and royalty payments from existing partners and licensees[244]. - The company contributed $5.0 million to a $75.0 million royalty financing transaction for Castle Creek Biosciences, acquiring a royalty interest in a Phase 3 asset[247]. Accumulated Deficit and Tax Benefits - The accumulated deficit as of March 31, 2025, remained at $1.2 billion, unchanged from the previous year[245]. - The company had an accumulated deficit of $1.2 billion as of March 31, 2025[267]. - The company has $5.9 million in gross unrecognized tax benefits, which will not impact the effective tax rate due to a full valuation allowance[263]. Stock Repurchase - The stock repurchase program authorized up to $50 million, with $0.6 million spent to purchase 26,488 shares as of March 31, 2025[273].

Report Overview and Business Highlights [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) XOMA Royalty reported significant Q1 2025 pipeline advancements, including MAA submission for tovorafenib and Phase 3 initiation, alongside **$18.0 million** in cash receipts - Key pipeline advancements include EMA acceptance of the MAA for **tovorafenib** and Takeda's initiation of a **Phase 3 trial for mezagitamab**[2](index=2&type=chunk) - The company acquired an economic interest in Castle Creek's **D-Fi (FCX-007)** and divested all unpartnered assets from the Kinnate acquisition[2](index=2&type=chunk) Q1 2025 Cash Receipts | Category | Amount | | :--- | :--- | | **Total Cash Receipts** | **$18.0 million** | | Royalty Receipts | $13.4 million | - The CEO emphasized commitment to generating shareholder value via prudent cash deployment, strict expense control, and opportunistic share repurchases, noting a tangible path to sustained cash flow[3](index=3&type=chunk) Portfolio Developments [Royalty and Milestone Acquisitions](index=1&type=section&id=Royalty%20and%20Milestone%20Acquisitions) XOMA expanded its portfolio by acquiring a royalty interest in **D-Fi (FCX-007)**, a Phase 3 asset for DEB, contributing **$5 million** to a **$75 million** syndicated financing - XOMA acquired a royalty interest in the **Phase 3 asset D-Fi (FCX-007)** for dystrophic epidermolysis bullosa (DEB), which holds **FDA Orphan Drug and Fast Track designations**[4](index=4&type=chunk) - The company contributed **$5 million** to a **$75 million** syndicated royalty financing transaction with Castle Creek Biosciences for the D-Fi asset[4](index=4&type=chunk) [Partner Updates & Milestone Achievements](index=2&type=section&id=Partner%20Updates%20%26%20Milestone%20Achievements) Significant partner progress generated milestone revenue, including **Rezolute's Breakthrough Therapy Designations** for ersodetug, **Day One's MAA filing for tovorafenib ($4.0M milestone)**, and **Takeda's Phase 3 initiation for mezagitamab ($3.0M milestone)** - Rezolute received **FDA Breakthrough Therapy Designation for ersodetug** for two indications, with sunRIZE Phase 3 study enrollment expected to complete in May 2025 and topline data in December 2025[6](index=6&type=chunk) - Day One Biopharmaceuticals' partner Ipsen's MAA filing for **tovorafenib** with the EMA triggered a **$4.0 million milestone payment** to XOMA[6](index=6&type=chunk) - Takeda's dosing of the first patient in a **Phase 3 trial for mezagitamab** triggered a **$3.0 million milestone payment (net)** to XOMA in Q2[7](index=7&type=chunk) - XOMA made a final **$6 million milestone payment** to Affitech Research AS for **VABYSMO®** achieving specific sales thresholds[6](index=6&type=chunk) [Anticipated 2025 Events of Note](index=3&type=section&id=Anticipated%202025%20Events%20of%20Note) XOMA anticipates key 2025 catalysts including a European regulatory decision for **Day One's tovorafenib**, **Rezolute's ersodetug Phase 3 topline data**, and **Gossamer/Chiesi's PROSERA study results** - An EMA decision is expected regarding the MAA for **tovorafenib** for pediatric low-grade glioma (pLGG)[7](index=7&type=chunk) - Topline data from the **sunRIZE Phase 3 trial of ersodetug** are expected in December 2025[7](index=7&type=chunk) - Topline results from the **Phase 3 PROSERA study** in pulmonary arterial hypertension (PAH) are expected[7](index=7&type=chunk) - **Sildenafil Cream** is anticipated to be available via prescription in Q4 2025 under Section 503B of the FDCA[7](index=7&type=chunk) Financial Results [First Quarter 2025 Financial Performance](index=4&type=section&id=First%20Quarter%202025%20Financial%20Performance) XOMA reported **Q1 2025 total income and revenues of $15.9 million**, up from **$1.5 million** in Q1 2024, achieving a **net income of $2.4 million** from a prior-year loss Q1 2025 vs Q1 2024 Financial Summary | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Income & Revenues | $15.9M | $1.5M | +$14.4M | | R&D Expenses | $1.3M | $33K | +$1.27M | | G&A Expenses | $8.1M | $8.5M | -$0.4M | | Net Income (Loss) | $2.4M | ($8.6M) | +$11.0M | - Revenue increase was driven by income from **VABYSMO®**, a **$4.0 million milestone** from Day One/Ipsen, a **$4.0 million payment** from Takeda, and **$1.5 million** in estimated royalties for **OJEMDA™**[8](index=8&type=chunk) - Increased R&D expenses were mainly due to a **$1.0 million pass-through licensing fee** related to the Takeda milestone and clinical trial costs for **KIN-3248**[9](index=9&type=chunk) [Cash Position and Capital Allocation](index=4&type=section&id=Cash%20Position%20and%20Capital%20Allocation) As of March 31, 2025, XOMA held **$95.0 million** in cash, received **$18.0 million** in Q1 cash receipts, and strategically deployed capital for new assets, share repurchases, and dividends - Ended Q1 2025 with **$95.0 million** in cash and cash equivalents (including **$4.8 million** in restricted cash), compared to **$106.4 million** at year-end 2024[15](index=15&type=chunk) - Total cash receipts for Q1 2025 were **$18.0 million**, comprising **$13.4 million** in royalties/commercial payments and **$4.6 million** in milestones/fees[15](index=15&type=chunk) - Key uses of cash in Q1 2025 included **$5.0 million** for a new asset acquisition, **$0.5 million** to repurchase **25,828 shares** of common stock, and **$1.4 million** for preferred stock dividends[15](index=15&type=chunk) Consolidated Financial Statements [Condensed Consolidated Statements of Operations](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, XOMA reported **total revenues of $15.9 million** and a **net income of $2.4 million**, a significant improvement from Q1 2024's **$1.5 million** revenue and **$8.6 million** net loss Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Total income and revenues** | **$15,912** | **$1,490** | | Total operating expenses | $9,983 | $8,494 | | **Income (Loss) from operations** | **$5,929** | **($7,004)** | | Interest expense | ($3,467) | ($3,551) | | **Net income (loss)** | **$2,367** | **($8,595)** | | Basic net income (loss) per share | $0.06 | ($0.86) | | Diluted net income (loss) per share | $0.06 | ($0.86) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, XOMA's total assets were **$212.8 million** (down from **$221.3 million**), with total liabilities decreasing to **$128.1 million** and stockholders' equity increasing to **$84.6 million** Condensed Consolidated Balance Sheets (in thousands) | | **March 31, 2025** | **December 31, 2024** | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $90,265 | $101,654 | | Total current assets | $113,225 | $125,604 | | **Total assets** | **$212,750** | **$221,277** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $20,434 | $24,374 | | Long-term debt | $99,934 | $106,875 | | **Total liabilities** | **$128,121** | **$139,356** | | **Total stockholders' equity** | **$84,629** | **$81,921** | | **Total liabilities and stockholders' equity** | **$212,750** | **$221,277** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, XOMA generated **$2.2 million** cash from operations, used **$6.7 million** in investing and **$6.9 million** in financing, resulting in an **$11.4 million** net cash decrease and a **$95.0 million** period-end balance Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash provided by (used in) operating activities | $2,198 | ($4,947) | | Net cash used in investing activities | ($6,693) | ($7,246) | | Net cash used in financing activities | ($6,894) | ($4,956) | | **Net decrease in cash, cash equivalents and restricted cash** | **($11,389)** | **($17,149)** | | Cash, cash equivalents and restricted cash at beginning of period | $106,416 | $159,550 | | **Cash, cash equivalents and restricted cash at end of period** | **$95,027** | **$142,401** | Company Information and Disclosures [About XOMA Royalty Corporation](index=5&type=section&id=About%20XOMA%20Royalty%20Corporation) XOMA Royalty operates as a biotechnology royalty aggregator, acquiring future economic rights from therapeutic candidates to provide non-dilutive, non-recourse funding to partners - XOMA's business model involves acquiring future economics, including milestones and royalties, from therapeutic candidates of pharmaceutical or biotech companies[16](index=16&type=chunk) - This model provides selling partners with **non-dilutive, non-recourse funding** for their corporate purposes[16](index=16&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor disclaimer, cautioning that forward-looking statements regarding future events are subject to significant biotech industry risks and uncertainties, including development failures and regulatory approvals - The press release contains forward-looking statements regarding the timing and amount of potential payments, regulatory events, and overall portfolio potential[17](index=17&type=chunk) - These statements are not guarantees of performance and are subject to risks, including licensees' ability to fund development, product market viability, and regulatory approval uncertainty[17](index=17&type=chunk)[18](index=18&type=chunk)

Core Insights - XOMA Royalty Corporation reported a strong first quarter for 2025, with total income and revenues of $15.9 million, a significant increase from $1.5 million in the same period in 2024, driven by various milestone payments and royalties [7][21]. - The company received $18.0 million in cash receipts during the first quarter, including $13.4 million from royalties and commercial payments, and $4.6 million from milestones and fees [15][7]. - XOMA Royalty is focused on prudent cash deployment, strict expense control, and opportunistic share repurchases, indicating a commitment to generating shareholder value [2][6]. Pipeline Advancements - The Marketing Authorization Application (MAA) for tovorafenib by Day One Biopharmaceuticals and Ipsen was accepted for review by the European Marketing Authority (EMA) [1]. - Takeda initiated a Phase 3 trial for mezagitamab, targeting chronic primary immune thrombocytopenia [1]. Business Development - XOMA Royalty acquired a royalty interest in Castle Creek Biosciences' D-Fi (FCX-007), a Phase 3 asset for dystrophic epidermolysis bullosa, contributing $5 million to a $75 million syndicated royalty financing transaction [3][1]. - The company successfully sold all unpartnered Kinnate assets, with a portion of any upfront payments to be distributed to Kinnate CVR holders [1][3]. Financial Performance - The company recorded a net income of $2.4 million for the first quarter of 2025, compared to a net loss of $8.6 million in the first quarter of 2024 [14][22]. - Research and Development (R&D) expenses increased to $1.3 million in Q1 2025 from $33,000 in Q1 2024, primarily due to licensing fees and clinical trial costs [9][21]. - General and Administrative (G&A) expenses decreased to $8.1 million in Q1 2025 from $8.5 million in Q1 2024, mainly due to lower stock compensation costs [10][11]. Anticipated Events - Key upcoming events include the EMA's decision on the MAA for tovorafenib and the completion of enrollment in the sunRIZE Phase 3 clinical trial for ersodetug, with topline data expected in December 2025 [6][1].

Core Viewpoint - XOMA Royalty Corporation will participate in the H.C. Wainwright Annual Royalty Company Virtual Conference on May 13, 2025, with key executives featured as speakers [1][2]. Group 1: Conference Participation - CEO Owen Hughes and CIO Brad Sitko will be featured speakers at the conference [1]. - Mr. Hughes will participate in a panel discussion titled "Pros and Cons of Royalty Model – Especially in Current Financing Environment" at 4:00 PM ET [2]. - Mr. Sitko will join the panel "Development-Stage Companies – Where do Royalty and Tech Platforms Play Fit?" at 5:00 PM ET [2]. Group 2: Upcoming Events - Members of XOMA Royalty's business development team will attend the H.C. Wainwright Annual BioConnect Investor Conference on May 20, 2025, in New York, NY [3]. Group 3: Company Overview - XOMA Royalty Corporation is a biotechnology royalty aggregator that helps biotech companies improve human health by acquiring future economic rights associated with therapeutic candidates [4]. - The company provides non-dilutive, non-recourse funding to sellers, allowing them to advance their drug candidates or for general corporate purposes [4]. - XOMA Royalty has a growing portfolio of assets related to the advancement of therapeutic candidates [4].

Core Viewpoint - XOMA Royalty Corporation has successfully sold its remaining Kinnate pipeline assets for up to $270 million in upfront and milestone payments, along with royalties on future commercial sales [1][2] Group 1: Financial Details - The total potential financial benefit from the sale includes up to $270 million in upfront and milestone payments, plus royalties on commercial sales at rates ranging from low single digits to mid-teens [1] - Holders of Kinnate Contingent Value Rights (CVRs) will receive 85% of all related payments made to XOMA Royalty prior to April 2, 2029 [2] Group 2: Company Background - XOMA Royalty Corporation operates as a biotechnology royalty aggregator, acquiring future economic rights associated with therapeutic candidates licensed to pharmaceutical or biotechnology companies [3] - The company provides non-dilutive, non-recourse funding to sellers, enabling them to advance their internal drug candidates or for general corporate purposes [3] Group 3: Current Portfolio - As of the date of the press release, XOMA Royalty's milestone and royalty portfolio includes commercial assets such as VABYSMO®, OJEMDA™, MIPLYFFA™, XACIATO™, IXINITY®, and DSUVIA® [6]

Group 1 - XOMA Royalty Corporation focuses on acquiring royalties and milestone rights from biotech assets in early to mid-development stages [1] - The company offers a preferred stock, XOMAO, which yields a dividend of 8.375% and is cumulative [1]

Core Insights - XOMA Royalty Corporation will have its Chief Investment Officer, Brad Sitko, presenting at the Jones Healthcare and Technology Innovation Conference on April 9, 2025 [1] - The presentation will be accessible online, and a replay will be available for 90 days post-event [2] Company Overview - XOMA Royalty Corporation operates as a biotechnology royalty aggregator, assisting biotech companies in enhancing human health [3] - The company acquires future economic rights associated with therapeutic candidates that are licensed to pharmaceutical or biotechnology firms, providing sellers with non-dilutive, non-recourse funding [3] - XOMA has a growing portfolio of assets, defined as the rights to receive potential future economics linked to the advancement of therapeutic candidates [3]

Revenue Generation and Payments - XOMA's royalty aggregator business model was implemented in 2017, focusing on early to mid-stage clinical assets, primarily in Phase 1 and 2 development [27]. - The company expects most future revenue to be based on milestone and royalty payments associated with its portfolio of assets [27]. - In 2024, XOMA received commercial payments totaling $16.9 million from Roche's VABYSMO and $7.3 million in 2023 [37]. - XOMA earned a $5.0 million milestone payment in October 2023 related to the FDA's acceptance of Day One's NDA for tovorafenib [39]. - The company is eligible to receive mid-single-digit royalties on sales of OJEMDA, earning $2.7 million in royalties in 2024 [41]. - XOMA acquired rights to arimoclomol with potential regulatory and commercial milestone payments of up to $52.5 million and low single-digit royalty payments [42]. - The company paid an upfront payment of $5.0 million for the LadRx Agreements and earned a net milestone payment of $2.2 million upon FDA approval of MIPLYFFA [44]. - XOMA received commercial payments totaling $1.6 million in 2024 and $1.7 million in 2023 from IXINITY sales [46]. - The company is eligible to receive up to $232.0 million in milestone payments from Rezolute based on the achievement of pre-specified criteria related to RZ358 [70]. - The company is entitled to receive additional milestone payments of up to $19.0 million and a 4% royalty on future sales under the Takeda Collaboration Agreement [66]. Acquisitions and Portfolio Management - The company has a diverse portfolio with over 60 early-stage assets across multiple therapeutic targets [35]. - XOMA's strategy includes expanding its portfolio through acquisitions of additional milestone and royalty revenue streams [28]. - In April 2024, the company entered into Daré Royalty Purchase Agreements, paying $22.0 million for 100% of remaining royalties related to XACIATO, with royalties ranging from low to high-single-digits [47]. - The company acquired an economic interest in DSUVIA for $8.0 million, retaining a 15% royalty on commercial sales, while receiving $0.1 million in commercial payments in 2024 [51][52]. - In November 2024, the company acquired Pulmokine for $20.0 million, gaining rights to net royalties ranging from low to mid-single-digits on commercial sales of seralutinib [53]. - The company acquired Kinnate in April 2024, paying $2.5879 in cash per share, and obtaining rights to potential milestone payments and royalties from Kinnate's assets [54][55]. - In October 2024, the company entered into a Twist Royalty Purchase Agreement for a $15.0 million upfront payment, eligible for up to $0.5 billion in milestone payments and low-single-digit royalties on future sales [57]. - The company routinely reviews acquisition opportunities for future royalties and milestone payments as part of its royalty aggregator strategy [103]. Financial Performance and Risks - The company generated net losses of $13.8 million and negative cash flows from operations of $13.7 million for the year ended December 31, 2024, with an accumulated deficit of $1.2 billion [133]. - The company has financed operations primarily through the sale of equity securities, debt, and royalty interests, and payments received under collaboration and licensing arrangements [134]. - The company may need to raise additional funds to acquire milestone and royalty interests, which may not be available at an acceptable cost of capital [139]. - The company expects to sustain losses in the foreseeable future, dependent on the success of its partners' product candidates and regulatory approvals [134]. - The company may face adverse impacts from macroeconomic conditions, including high interest rates and economic inflation, affecting its financial performance and stock price [136]. - The company faces significant risks related to acquisitions, including potential credit risks from licensors or licensees defaulting, which could adversely affect future royalty and milestone payments [106]. - Acquisitions may not yield expected financial benefits and could disrupt business operations, dilute shareholder value, and negatively impact stock market performance [107]. - The company faces risks related to the potential decline in income from milestones and royalties, which could adversely affect financial condition and results of operations [151]. Regulatory and Competitive Environment - Regulatory changes in the U.S. and EU are increasingly limiting or regulating medical product pricing, which could adversely affect the company's royalty income [89]. - The company is subject to various governmental regulations that could impact its operations and financial results if compliance is not maintained [86]. - The biopharmaceutical industry is highly competitive, with risks of product obsolescence due to new therapies or generics, which could materially impact potential royalty revenues [121]. - The company faces significant competition in the biotechnology and pharmaceutical industries, including from companies with greater financial and technical resources [85]. - The company faces significant competition from biotechnology research conducted in universities and non-profit organizations, which may lead to the development of superior products [192]. Intellectual Property and Legal Matters - The company relies on patent protection and trade secrets, but faces challenges in enforcing these rights, particularly in foreign jurisdictions [205]. - The company is engaged in ongoing litigation to protect intellectual property rights, which can be costly and time-consuming [220]. - The company may face claims of patent infringement, which could hinder the development, manufacturing, and sales of its products unless licenses are obtained, potentially affecting future revenue [222]. - Participation in litigation regarding intellectual property could adversely impact the company's competitive position and may lead to a decline in stock price if perceived negatively by analysts or investors [223]. - The company incurred $4.1 million in costs related to an adverse arbitration decision regarding milestone and royalty payments [221]. Future Outlook and Strategic Plans - The company intends to continue acquiring development-stage product candidates, but there are uncertainties regarding regulatory approvals and market acceptance that could affect financial outcomes [116]. - The company plans to continue business development efforts to acquire potential milestone and royalty streams, but competition for suitable assets is fierce [156]. - The company may not be able to successfully manage risks associated with integrating new products or companies into its business [157]. - The timing of clinical trials for product candidates may face significant delays due to various factors, impacting the overall development timeline [169]. - The company's future income is highly dependent on numerous milestone and royalty-specific assumptions, which may prove to be inaccurate, potentially affecting expected returns [150].

Financial Performance - Total cash receipts for 2024 amounted to $46.3 million, including $20.0 million in royalties and commercial payments[17] - The company recorded total income and revenues of $28.5 million for the full year 2024, a significant increase from $4.8 million in 2023[7] - Total income and revenues for 2024 reached $28,487,000, a significant increase from $4,758,000 in 2023, representing a growth of approximately 498%[24] - The company reported a gain of $19,316,000 from the acquisition of Kinnate, contributing positively to the financial results[24] - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[29] Expenses and Losses - R&D expenses increased to $2.9 million for the full year 2024, up from $0.1 million in 2023, primarily due to clinical trial costs related to Kinnate[9] - G&A expenses for the full year 2024 were $34.5 million, compared to $25.6 million in 2023, largely due to acquisition-related costs[10] - Net loss for the full year 2024 was $13.8 million, a reduction from a net loss of $40.8 million in 2023[16] - Credit losses totaled $30.9 million for the year 2024, significantly impacting net loss figures[12] - The net loss for 2024 was $13,821,000, a reduction from a net loss of $40,831,000 in 2023, indicating an improvement of about 66%[24] - Total operating expenses for 2024 were $68,463,000, up from $46,606,000 in 2023, marking an increase of approximately 47%[24] Cash and Assets - The company had cash and cash equivalents of $106.4 million as of December 31, 2024, down from $159.6 million in 2023[17] - Cash and cash equivalents decreased to $101,654,000 as of December 31, 2024, down from $153,290,000 in 2023, a decline of about 34%[26] - Total assets decreased to $221,277,000 in 2024 from $234,301,000 in 2023, a decline of about 6%[26] - The company’s accumulated deficit increased to $1,237,057,000 as of December 31, 2024, compared to $1,223,223,000 in 2023[26] Acquisitions and Portfolio Growth - XOMA Royalty doubled its royalty and milestone portfolio to over 120 assets through five transactions in 2024[1] - XOMA Royalty completed two whole company acquisitions in 2024, adding approximately $7.8 million in cash and five assets to its portfolio[3] - FDA approvals were received for Day One's OJEMDA™ and Zevra's MIPLYFFA™, contributing to the company's royalty income[1] User and Market Growth - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[29] - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 15% to 18%[29] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[29] - Market expansion plans include entering two new international markets by Q3 2024, targeting a potential user base of 3 million[29] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[29] Customer and Operational Improvements - Customer retention rates improved to 85%, up from 80% in the previous quarter, reflecting enhanced customer satisfaction[29] - The company aims to reduce operational costs by 10% through efficiency improvements in the next year[29] - A new marketing strategy is expected to increase brand awareness by 30% in the upcoming quarter[29] - The weighted average shares used in computing basic net loss per share increased to 11,701,000 in 2024 from 11,471,000 in 2023[24] - The company recognized $6,650,000 in revenue from contracts with customers in 2024, compared to $2,650,000 in 2023, representing an increase of approximately 150%[24]