Summary of XOMA Corporation FY Conference Call Company Overview - **Company Name**: XOMA Corporation (NasdaqGM:XOMA) - **Enterprise Value**: Approximately $550 million - **Market Capitalization**: Around $450 million - **Cash on Balance Sheet**: About $80 million - **Outstanding Loan**: One loan with Blue Owl for VABYSMO - **Preferred Shares**: Approximately $65 million - **Phase III Assets**: Highest number of Phase III assets in development, totaling about 15 [12][14] Core Strengths and Challenges - **Strengths**: - Largest portfolio of any royalty company with over 120 assets - Profitable products across the portfolio, unlike many biotech companies that are not profitable at launch [12][13] - Unique investment strategy covering the entire drug development spectrum from preclinical to commercial assets [13] - **Challenges**: - Operating with a limited capital situation compared to competitors [21] - Need to manage binary risks associated with biotech investments [14] Portfolio Development Strategy - **Portfolio Building**: - Transitioned from 1 commercial asset to 7 since 2023, focusing on a balanced approach between late-stage and early-stage assets [15] - Emphasis on acquiring undervalued assets in overlooked therapeutic areas [15][16] - **Wind Down Transactions**: - Engaged in transactions where companies pay XOMA cash to acquire assets, generating approximately $12 million in net capital last year [19] - Accumulated about $500 million in tax deductions through these transactions, shielding future profits from federal taxes [20][22] Upcoming Milestones and Catalysts - **Phase III Programs**: - 15 Phase III programs expected to read out over the next 24-30 months, with significant news flow anticipated [29] - Recent Phase III results for Rezolute and Gossamer were unfavorable, but confidence remains in upcoming trials [30][31] - **Regulatory Decisions**: - Anticipated regulatory decisions for MIPLYFFA and Ojenda, with positive developments for ONIVYDE expected to enhance royalty growth [44][46] Market Potential and Product Insights - **Rezolute**: - Market size for tumor hyperinsulinism expected to be significantly larger than congenital hyperinsulinism, with potential revenues exceeding $500 million [50][59] - **MIPLYFFA Launch**: - Exceeded expectations due to rapid patient identification and weight-based dosing advantages [66][70] - **Ovaprene**: - Positioned in the growing non-hormonal market, with expectations for significant market potential as it approaches Phase III trials [78][80] Financial Strategy and Capital Allocation - **Capital Allocation**: - Focus on accumulating assets without significant cash outlays while buying back stock to enhance future returns [88][89] - Interest in acquiring larger biotech companies to access undervalued royalties [91] - **Profitability Outlook**: - Projected profitability by 2027 driven by royalties from MIPLYFFA and Ojenda, alongside VABYSMO [86][87] Conclusion - XOMA Corporation is strategically positioned with a robust portfolio and a focus on risk management and capital efficiency. The company aims to leverage its unique asset base and upcoming milestones to drive shareholder value and achieve profitability in the coming years.

NASDAQ COMMON: XOMA NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO THE ROYALTY AGGREGATOR FOR BIOTECH COMPANIES Q1 2026 CORPORATE PRESENTATION XOMA ROYALTY – WHAT WE DO Royalties Milestones Science Structuring 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 w ...

Corporate Presentation - XOMA Royalty Corporation updated its corporate presentation on March 2, 2026, which includes key financial results and operational insights[5] - The updated presentation is referenced in Item 2.02, indicating significant financial data is available on pages 10-11 of the document[4] Company Information - The company is listed on the Nasdaq Global Market under the symbol XOMA, with a par value of $0.0075 per share[2] - The company has not elected to use the extended transition period for complying with new financial accounting standards, indicating a commitment to timely reporting[3] Financial Metrics - The report does not include specific financial metrics or performance indicators, suggesting further details may be found in the attached corporate presentation[6]

Company Overview - XOMA Royalty Corporation (XOMA) generates financial income through royalties, milestones, and other fees from programs operated by other biotechnology and pharmaceutical companies [1]. Financial Structure - The cash inflows received by XOMA are derived from various programs run by other biotech or pharmaceutical firms, indicating a reliance on external partnerships for revenue generation [1].

Core Viewpoint - XOMA Royalty Corporation has successfully completed its tender offer to acquire all outstanding shares of Generation Bio Co. for $4.2913 per share in cash, along with a contingent value right, resulting in Generation Bio becoming a wholly owned subsidiary of XOMA Royalty [1][3]. Group 1: Tender Offer Details - The tender offer expired on February 6, 2026, with 4,722,533 shares of Generation Bio common stock validly tendered, representing approximately 70% of the outstanding shares [2]. - All conditions of the tender offer were satisfied or waived, allowing XOMA Royalty to accept for payment all validly tendered shares [2]. Group 2: Merger and Aftermath - Following the tender offer, XRA 7 Corp., a subsidiary of XOMA Royalty, merged with Generation Bio, converting all untendered shares into the right to receive the offer price [3]. - Generation Bio's common stock ceased trading on Nasdaq after the merger, and plans are in place for the shares to be delisted and deregistered [3]. Group 3: Company Overview - XOMA Royalty is a biotechnology royalty aggregator that helps biotech companies by acquiring potential future economics associated with therapeutic candidates [5]. - The company provides non-dilutive, non-recourse funding to sellers, enabling them to advance their drug candidates or for general corporate purposes [5].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving XOMA Royalty Corporation and its officers or directors [1] Group 1: Company Overview - XOMA Royalty Corporation is listed on NASDAQ under the ticker symbol XOMA [1] - The company is involved in a partnership with Rezolute, Inc. for the development of medical treatments [3] Group 2: Recent Developments - Rezolute, Inc. announced that its Phase 3 sunRIZE study evaluating ersodetug for congenital hyperinsulinism did not meet its primary endpoint, showing only a 45% reduction in hypoglycemia events at the highest dose, which was not statistically significant compared to a 40% improvement in the placebo group [3] - The study also failed to meet its key secondary endpoint, with a 25% reduction in time spent in hypoglycemia at the 10 mg/kg dose, again not statistically significant compared to a 5% increase in the placebo group [3] - Following this announcement, XOMA's stock price dropped by $7.82 per share, or 22.76%, closing at $25.39 per share on December 19, 2025 [3]

Core Viewpoint - XOMA Royalty Corporation announces the resignation of CFO Thomas Burns, who has been instrumental in the company's transition to a royalty aggregator, and appoints Jeffrey Trigilio as the new CFO to continue the company's growth strategy in the biotech sector [1][2]. Company Leadership Transition - Thomas Burns is stepping down after nearly two decades of service, with CEO Owen Hughes expressing gratitude for his contributions to the company's financial foundation and growth [2]. - Jeffrey Trigilio has been appointed as the new CFO, bringing extensive experience from various biotech companies and investment banks, including his recent role at Obsidian Therapeutics [2][3]. Strategic Direction - The leadership team, under Trigilio, aims to enhance the royalty portfolio through disciplined capital deployment, robust diligence, and innovative deal structuring to generate shareholder value [3]. - XOMA Royalty operates as a biotechnology royalty aggregator, acquiring future economic rights associated with therapeutic candidates licensed to pharmaceutical companies, providing sellers with non-dilutive funding [3]. Portfolio Overview - XOMA Royalty's portfolio includes commercial assets such as VABYSMO, OJEMDA™, MIPLYFFA™, XACIATO™, IXINITY, and DSUVIA, with other assets being investigational compounds [6].

Core Insights - XOMA Royalty Corporation has amended its collaboration with Takeda, regaining a majority of the royalty interest in mezagitamab while diversifying its portfolio through a strategic royalty share transaction [1][2] Summary by Relevant Sections Collaboration with Takeda - The collaboration, originally established in 2006, has been amended to reduce Takeda's royalty and milestone payment obligations related to mezagitamab [1] - XOMA Royalty will now receive low to mid-single-digit royalties and milestone payments across nine development-stage assets in Takeda's externalized assets portfolio [1][2] Financial Implications - Prior to the amendment, XOMA Royalty held a mid-single-digit royalty and $16.25 million in potential milestones for mezagitamab [3] - Post-amendment, XOMA Royalty will retain a low single-digit royalty entitlement and up to $13.0 million in milestones for mezagitamab [3] Development-Stage Assets - The nine development-stage assets include: - **Osavampator**: Developed by Neurocrine Biosciences for major depressive disorder [4] - **Volixibat**: Developed by Mirum Pharmaceuticals for primary sclerosing cholangitis and primary biliary cholangitis [5] - **OHB-607**: A recombinant human IGF-1/IGFBP-3 for preventing bronchopulmonary dysplasia in premature infants, along with other early-stage assets from Oak Hill Bio [6] - **REC-4881**: An investigational MEK1/2 inhibitor for familial adenomatous polyposis, affecting approximately 50,000 people in the U.S. and Europe [7]

Core Insights - XOMA Royalty Corporation has announced an agreement to acquire Generation Bio Co. for $4.2913 per share, with additional contingent value rights (CVR) for stockholders [1][2][3] Acquisition Details - The acquisition involves a cash tender offer for all outstanding shares of Generation Bio common stock, with the closing expected in February 2026 [3][4] - Generation Bio's board has unanimously approved the merger, determining it to be in the best interests of stockholders [2][4] - Approximately 15% of Generation Bio stockholders have signed support agreements to tender their shares in the offer [4] Financial Aspects - The CVR entitles holders to potential payments based on various conditions, including net cash at closing exceeding $29 million and savings realized from XOMA Royalty's Cambridge office lease obligations [7] - Payments from Generation Bio's existing license agreement with Moderna will also be shared with CVR holders, potentially delivering up to 90% of such payments [7] Company Background - XOMA Royalty is a biotechnology royalty aggregator that acquires future economic rights associated with therapeutic candidates licensed to pharmaceutical companies [6] - Generation Bio focuses on delivering small interfering RNA (siRNA) therapies using cell-targeted lipid nanoparticles [8]

Core Viewpoint - XOMA Royalty Corporation has successfully completed the acquisition of Mural Oncology plc, with shareholders receiving $2.035 in cash per share as part of the transaction [1][2]. Acquisition Details - The acquisition was approved by Mural shareholders during a special meeting on October 24, 2025, and was sanctioned by the Irish High Court on December 3, 2025 [2]. - The acquisition became effective on December 5, 2025, following the delivery of the court order to the Irish Companies Registration Office [2]. Trading and Delisting - Mural's shares ceased trading on Nasdaq prior to the market opening on December 5, 2025, and the company plans to delist and deregister its shares under the Securities Exchange Act of 1934 [3]. Advisory Information - XOMA Royalty was advised by Gibson, Dunn & Crutcher LLP and Mason Hayes & Curran LLP, while Davy Corporate Finance UC acted as its financial advisor [4]. - Mural was advised by Lucid Capital Markets, LLC, with legal support from Wilmer Cutler Pickering Hale and Dorr LLP and Arthur Cox LLP [4]. Company Overview - XOMA Royalty Corporation operates as a biotechnology royalty aggregator, acquiring future economic rights associated with therapeutic candidates licensed to pharmaceutical or biotechnology companies [5]. - The company provides non-dilutive funding to sellers, enabling them to advance their internal drug candidates or for general corporate purposes [5].