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Here are 1-3 brief analogies for XOMA Royalty:

1. Think of it like a **REIT**, but for biotech drug royalties instead of buildings.

2. It's similar to **Hipgnosis** or **Round Hill Music**, but acquiring future drug royalties instead of music catalogs.

3. A **Berkshire Hathaway**, but focused on aggregating future drug royalty payments rather than entire companies.

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• Biotechnology Royalty Aggregation: The acquisition of future economic rights, or royalties, from pre-commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies.

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XOMA Royalty (symbol: XOMA) operates as a biotechnology royalty aggregator. Its business model involves acquiring the rights to future royalty and milestone payments associated with pre-commercial therapeutic candidates that have been licensed to other companies.

Therefore, XOMA's major customers are the pharmaceutical and biotechnology companies that have licensed these therapeutic candidates and are responsible for their development and commercialization. These companies make royalty and milestone payments to XOMA as the underlying assets progress and generate sales.

The provided background information does not list the specific names of these pharmaceutical or biotechnology companies that constitute XOMA's major customers.

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Owen Hughes, Chief Executive Officer
Owen Hughes was appointed full-time Chief Executive Officer in January 2024, having served as Executive Chairman of the Board and Interim Chief Executive Officer since January 2023. He has a strong background as an operator and investor in the healthcare field, serving as CEO of Sail Bio, Inc., a private biotechnology company, since February 2022, and as CEO and co-founder of Cullinan Oncology, Inc., a publicly-traded oncology company, from September 2017 to October 2021. Previously, Mr. Hughes was Chief Business Officer and Head of Corporate Development at Intarcia Therapeutics, Inc. Prior to his operating roles, he spent 16 years on Wall Street in various capacities, including at Brookside Capital (an operating division of Bain Capital) and Pyramis Global Advisors (a Fidelity Investments Company). Mr. Hughes has also served on the boards of companies that were acquired, including Radius Health, Inc. (sold to Gurnet Point Capital and Patient Square Capital) and Translate Bio, Inc. (acquired by Sanofi).

Jeffrey Trigilio, Chief Financial Officer
Jeffrey Trigilio joined XOMA Royalty as Chief Financial Officer in January 2026. Before joining XOMA, Mr. Trigilio held various leadership roles at Obsidian Therapeutics, Inc., including Chief Financial and Operating Officer. From September 2020 to March 2024, he served as the Chief Financial Officer at Cullinan Therapeutics, Inc. His career also includes financial, strategic, and business development roles at Amylyx Pharmaceuticals, Inc., and Alexion Pharmaceuticals, Inc., after starting in investment banking.

Brad Sitko, Chief Investment Officer
Bradley Sitko has been XOMA's Chief Investment Officer since January 2023. Prior to joining XOMA, Mr. Sitko was a Managing Director, Strategic Finance, at RTW Investments, LP, a global investment firm in the biopharmaceutical and medical technology sectors, from November 2019 to January 2023. In this role, he led the firm's royalty monetization, structured finance, and alternatives efforts. During the same period, he also served as Chief Financial Officer of Ji Xing Pharmaceuticals Limited, a biopharmaceutical company incubated by RTW Investments, LP. From March 2015 to November 2019, Mr. Sitko was Vice President, Finance, Operations and Corporate Development of DNAnexus, Inc. He also worked as a Director at MTS Health Partners, an investment bank, where he advised on royalty monetization, financing, restructurings, and mergers and acquisitions within the biopharmaceutical and healthcare services sectors.

Maricel Montano, Chief Legal Officer
Maricel Montano joined XOMA Royalty as Chief Legal Officer in August 2025.

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The key risks to XOMA Royalty (symbol: XOMA) are:

1. Dependence on the successful development, regulatory approval, and commercialization of licensed therapeutic candidates by partners. XOMA's revenue streams are entirely contingent on its partners' ability to advance the therapeutic candidates (many of which are in early to mid-stage clinical development) through successful clinical trials, secure regulatory approvals, and effectively commercialize these products. Failure at any stage, including clinical trial setbacks, delays in regulatory approvals, or poor market acceptance, would directly and materially impact XOMA's future royalty payments and financial condition.
2. Significant litigation risk. XOMA is currently involved in substantial litigation, notably against Janssen Biotech Inc., concerning alleged unauthorized use of XOMA's intellectual property related to TREMFYA. This litigation carries considerable uncertainty regarding its outcome and could result in material financial implications, including significant legal expenses and potential impacts on XOMA's financial results and stock price, depending on the resolution.
3. Reliance on third-party licensees and their operational performance. As a royalty aggregator, XOMA relies heavily on its licensees and royalty-agreement counterparties to manage the development, regulatory processes, intellectual property protection, and commercialization efforts of the underlying assets. XOMA has limited control over these operational aspects, and any changes in its partners' strategies, financial difficulties, or failures in execution can directly diminish or eliminate the expected royalty streams.

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Here are 3-5 expected drivers of future revenue growth for XOMA Royalty (XOMA) over the next 2-3 years:

1. Continued Expansion and Acquisition of Royalty Assets: XOMA operates as a biotechnology royalty aggregator, and a key driver of its future revenue growth is the ongoing expansion of its portfolio through the acquisition of new royalty and milestone assets. The company added multiple royalty and milestone assets in 2025 through acquisitions and licensing agreements. This strategy directly contributes to the broadening of its potential revenue base.
2. Commercial Sales Ramp-ups of Key Products: Future revenue growth is anticipated from the increased commercial sales of existing key products within XOMA's diversified portfolio. Analysts project substantial growth for XOMA Royalty, driven primarily by the ramp-up in commercial sales of key products. The company's portfolio includes commercial-stage products that are generating stable and growing royalty streams.
3. Progression and Milestone Payments from Pipeline Assets: XOMA focuses on acquiring the economic rights associated with pre-commercial therapeutic candidates, particularly those in Phase 1 and 2. As these early to mid-stage clinical assets advance through development, they have the potential to trigger significant milestone payments, contributing to revenue growth.
4. Potential Litigation Settlement Related to TREMFYA: Cash flow forecasts for XOMA have benefited from the inclusion of a potential litigation settlement concerning TREMFYA. XOMA initiated legal action against Janssen Biotech, Inc., claiming breach of contract and unjust enrichment regarding the commercialization of TREMFYA, and the outcome of this litigation could have material financial implications, potentially boosting future revenue.

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Share Repurchases

• On January 2, 2024, XOMA announced a stock repurchase program authorizing the company to purchase up to $50 million of its common stock through January 2027.
• During 2025, XOMA repurchased and retired 648,048 common shares for a cash cost of $16 million.
• In the first quarter of 2025, XOMA deployed $0.5 million to repurchase 25,828 shares of its common stock.

Share Issuance

• XOMA issued 8.625% Series A cumulative, perpetual preferred stock in December 2020 and 8.375% Series B cumulative, perpetual preferred stock in April 2021.
• As of March 31, 2025, the company had 984,000 shares of Series A preferred stock, 1,600 shares of Series B preferred stock, and 5,003 shares of convertible preferred stock outstanding.

Inbound Investments

• In December 2023, XOMA secured up to $140 million in non-dilutive capital through financing with Blue Owl Capital, intended to support stock repurchases and additional royalty and milestone acquisitions.

Outbound Investments

• In 2024, XOMA deployed $65 million to acquire new milestone and royalty assets, which doubled its portfolio to over 120 royalty assets.
• During the first nine months of 2025, XOMA deployed $25.0 million to acquire additional assets for its royalty and milestone portfolio, including economic interests in partnered assets from LAVA Therapeutics, and the acquisitions of Turnstone Biologics and HilleVax.
• Key acquisitions in 2024 included a $15 million royalty monetization agreement with Twist Bioscience, acquiring 50% of future milestones and royalties in over 60 early-stage programs, and the addition of economic interests to three assets from Daré Bioscience for a $22 million upfront payment.

Capital Expenditures

• Capital expenditures for XOMA Royalty are minimal, reflecting its business model as a royalty aggregator rather than a company with significant physical assets; for example, capital expenditures were reported as $20K in Q3 2025.