XOMA Royalty Corp (NASDAQ: XOMA)

XOMA Royalty Corp is a royalty aggregator that provides capital to biotechnology companies in exchange for economic rights to future milestone and royalty payments associated with clinical candidates and approved products. The company operates in the biotechnology and pharmaceutical industries, focusing on acquiring non-dilutive, non-recourse funding opportunities from drug developers and marketers. XOMA Royalty Corp maintains a diversified portfolio of economic rights to future potential milestone and royalty payments associated with over 120 commercial products and pre-commercial therapeutic candidates. The company seeks to generate stockholder value by mitigating single-asset binary risk through portfolio diversification and operating under a capital-efficient and low corporate cost structure.

XOMA Royalty Corp generates revenue primarily through commercial payments, milestone payments, and other fees received from its portfolio of royalty and economic interests. The company receives cash when licensees or partners achieve specified development milestones or when approved products generate net sales that trigger royalty obligations. In 2025, XOMA Royalty Corp received $33.6 million in commercial payments and $16.9 million from milestone payments and other fees, resulting in total cash receipts of $50.5 million from its portfolio. Revenue is derived from a range of therapeutic areas including retinal diseases, pediatric oncology, rare diseases, bleeding disorders, acute pain treatment, and women’s health, among others. The company does not engage in drug development or commercialization itself; instead, it relies on its partners and licensees to bear all research, development, and commercialization costs.

The company does not report distinct operational segments and operates as a single business unit focused on royalty aggregation and acquisition of economic interests in biopharmaceutical assets.

XOMA Royalty Corp occupies a distinctive position in the biotechnology financing landscape as a specialized royalty aggregator, competing with other investment vehicles and funds that seek to acquire royalty streams or provide alternative financing to development-stage companies. Its competitive advantage lies in its focus on early to mid-stage clinical assets with significant commercial potential, its ability to structure complex acquisitions, and its capital-efficient model where partners bear all R&D and commercialization costs. The company differentiates itself by targeting assets with long market exclusivity and therapeutic advantages, and by leveraging its experience in structuring transactions involving publicly traded and private biotech companies. While other large pharmaceutical companies may possess greater financial and technical resources, XOMA Royalty Corp’s low-cost structure and disciplined portfolio approach allow it to participate in high-potential opportunities without assuming development risk.

XOMA Royalty Corp’s customer base consists primarily of biotechnology and pharmaceutical companies that license or partner with the company to secure funding for their drug development programs. These partners include major pharmaceutical firms such as Roche, Johnson & Johnson, Takeda, and Pfizer, as well as specialized biotech companies like Day One Biopharmaceuticals, Zevra Therapeutics, Castle Creek Biosciences, and LAVA Therapeutics. The company also engages with entities such as Rezolute, Pulmokine, Twist Bioscience, and Kuros Biosciences, among others. Through these relationships, XOMA Royalty Corp earns royalties and milestone payments tied to the commercial and developmental performance of products across therapeutic areas including oncology, rare diseases, cardiopulmonary disorders, and women’s health.