XOMA Royalty (XOMA) Company Report

XOMA reported being free cash flow positive in 2025, with over $50 million in top-line revenue, which enabled the repurchase of $16 million in stock and the addition of 22 drugs to its portfolio.
The company is pursuing a potential claim against J&J regarding Tremfya, with mediation expected this summer and a trial, if necessary, in early 2028, which could result in a "pretty significant" award.
In 2025, XOMA completed a royalty exchange with Takeda, converting one asset into 9 additional assets to diversify risk and increase portfolio optionality.
XOMA holds over $620 million in NOLs and capitalized R&D deductions, expected to keep it a non-federal income taxpayer through 2030, ensuring a low single-digit effective tax rate as cash flows grow.

2 days ago

Transcript

XOMA Reports 2025 Financial Performance, Strategic Portfolio Growth, and Litigation Progress

XOMA

Revenue Acceleration/Inflection

Share Buyback

Legal Proceedings

XOMA achieved free cash flow positive status in 2025, with a top line exceeding $50 million, including $33 million from royalty receipts. The company anticipates being free cash flow positive again in 2026, and by 2027, royalties from approved assets are expected to cover all operating expenses and financial obligations.
In 2025, XOMA expanded its portfolio by acquiring 9 additional assets through a royalty exchange with Takeda and added a total of 22 drugs. The company also repurchased $16 million of stock, reducing shares outstanding by approximately 4-5%.
XOMA is pursuing a breach claim against J&J for Tremfya royalties, having won a motion to dismiss in December. Mediation is scheduled for summer 2026, with a potential trial in early 2028 if no settlement is reached.
Key upcoming catalysts include the volixibat Phase 2b readout in Q2 2026 and the ersodetug Phase 3 readout in H2 2026. Additionally, XOMA receives approximately $25 million annually in Vabysmo royalties, which are projected to pay off the associated loan by the end of 2030.

2 days ago

Transcript

XOMA Discusses 2025 Financials, Future Outlook, and Key Catalysts

XOMA

Revenue Acceleration/Inflection

Share Buyback

Legal Proceedings

XOMA reported being free cash flow positive in 2025, with over $50 million in top-line revenue, and repurchased $16 million of stock, representing about 650,000 shares.
The company anticipates being free cash flow positive again in 2026, with royalties from approved assets alone expected to cover operating expenses and financial obligations by 2027.
XOMA holds over $620 million in net operating losses (NOLs) and capitalized R&D deductions, which are expected to prevent federal income tax payments through 2030.
Key upcoming catalysts include Mirum's volixibat Phase IIb readout in PSC in Q2 2026 and Rezolute's ersodetug Phase III data in congenital hyperinsulinism in H2 2026.
XOMA is pursuing a potential claim for economics on J&J's Tremfya, with mediation anticipated in summer 2026 and a potential jury trial scheduled for early 2028.

2 days ago

Transcript

XOMA Royalty Discusses Portfolio Growth, Financial Strategy, and Profitability Outlook

XOMA

M&A

Share Buyback

New Projects/Investments

XOMA Royalty has an enterprise value of approximately $550 million and a market cap of around $450 million, with $80 million in cash and $65 million in preferreds. The company anticipates becoming profitable in 2027 driven by royalties from MIPLYFFA, Ojenda, and VABYSMO.
The company manages the largest portfolio among royalty companies with over 120 assets, including 15 phase III assets expected to read out over the next 24-30 months. Its commercial asset count has increased from 1 in 2023 to 7.
XOMA's strategy includes acquiring fundamentally mispriced assets and executing wind-down transactions that generated $0.5 billion in tax deductions last year, expected to shield federal income taxes for 4-5 years.
A significant strategic move was a swap transaction with Takeda, where XOMA exchanged a 5.5% royalty on mezagitamab for 9 new assets (including Velixabat, osavampator, OHB-607, a MEK1/2 inhibitor, and 5 preclinical assets) for $20 million, while retaining a low single-digit royalty on mezagitamab.
To enhance shareholder value, XOMA bought back approximately 5% of its stock last year (2025), contributing to a decrease in shares outstanding since 2023.

Mar 2, 2026, 4:50 PM

Transcript

XOMA Royalty Provides Business Overview and Strategic Update at TD Cowen Conference

XOMA

New Projects/Investments

Share Buyback

M&A

XOMA Royalty reported an enterprise value of approximately $550 million and a market capitalization of around $450 million, holding $80 million in cash and $65 million in preferreds.
The company manages the industry's largest royalty portfolio with over 120 assets, including 15 phase III programs, and strategically invests across the drug development spectrum to diversify risk.
Creative "wind-down" transactions generated approximately $12 million in net capital last year and secured about $500 million in tax deductions, which are expected to shield federal income taxes for the next four to five years.
XOMA anticipates achieving profitability by 2027 from royalties on OJEMDA and MIPLYFFA alone, and has reduced its shares outstanding by roughly 5% since 2023 through buybacks.
Upcoming catalysts include the Q3 readout for Rezolute's tumor hyperinsulinism study and Velixabat data in PSC within the next few months.

Mar 2, 2026, 4:50 PM

Transcript

XOMA Royalty Provides Business Overview and Strategic Update at TD Cowen Conference

XOMA

New Projects/Investments

Share Buyback

Revenue Acceleration/Inflection

XOMA Royalty has an enterprise value of approximately $550 million and a market capitalization of around $450 million, supported by $80 million in cash and $65 million in preferreds.
The company manages a portfolio of over 120 assets, with 15 in Phase III development expected to read out over the next 24-30 months.
Through strategic wind-down transactions, XOMA generated $12 million in net capital last year and accumulated approximately $500 million in tax deductions, which are anticipated to shield federal income taxes for 4-5 years.
Upcoming catalysts include the Q3 readout for Rezolute's tumor hyperinsulinism study, which previously showed a 75% response rate in an open-label extension. The company's royalties are currently covering its expense base, and the CFO projects profitability by 2027 from Ogenda and MIPLYFFA royalties alone. XOMA also bought back approximately 5% of its stock last year.

Mar 2, 2026, 4:50 PM

Transcript

XOMA Royalty Provides Preliminary FY2025 Financial Update and 2025 Strategic Review

XOMA

Earnings

Share Buyback

New Projects/Investments

XOMA Royalty reported preliminary unaudited FY2025 cash receipts from royalties and milestones of ~$49-50 million and held ~$133 million in cash, cash equivalents, and restricted cash as of December 31, 2025.
In 2025, the company expanded its portfolio by adding 24 assets, including 5 in Phase 2 & 3, through various royalty deals and acquisitions.
During FY2025, XOMA Royalty executed a share buyback program, repurchasing 648,048 common shares for $16.0 million.
The company anticipates key portfolio events in 2026, such as commercial sales ramps, marketing authorization decisions, product launches, and data announcements for various drug candidates.
G&A expenses for FY2025 increased by approximately $1.0 million due to ongoing litigation against Janssen Biotech, Inc..

Mar 2, 2026, 12:00 PM

Presentation

XOMA Royalty Corporation Provides Preliminary FY2025 Financial Update and Corporate Presentation

XOMA

Earnings

Share Buyback

Legal Proceedings

XOMA Royalty Corporation reported preliminary cash received from royalties and milestones of ~$49–50 million for FY2025, with cash, cash equivalents, and restricted cash totaling ~$133 million as of December 31, 2025.
The company repurchased and retired 648,048 common shares for $16.0 million during FY 2025, with 11,888,489 common shares outstanding as of February 27, 2026.
FY2025 G&A expenses included an increase of approximately $1.0 million due to ongoing litigation against Janssen Biotech, Inc..
XOMA Royalty, operating as a biotech royalty aggregator, anticipates key portfolio events in 2026, including regulatory decisions, sales ramps, and product launches for assets such as seralutinib, ersodetug, and volixibat.

Mar 2, 2026, 11:04 AM

8-K

XOMA Royalty Completes Acquisition of Generation Bio

XOMA

M&A

Delisting/Listing Issues

XOMA Royalty Corporation successfully completed its tender offer and acquisition of Generation Bio Co. on February 9, 2026.
The offer price for Generation Bio common stock was $4.2913 in cash per share, plus one non-tradeable contingent value right (CVR).
Approximately 70% of Generation Bio's outstanding shares were validly tendered by the tender offer's expiration date of February 6, 2026.
Following the merger, Generation Bio became a wholly owned subsidiary of XOMA Royalty, and its common stock ceased trading on Nasdaq on February 6, 2026, with plans for delisting and deregistration.

Feb 9, 2026, 2:53 PM

Press Release

XOMA Royalty to Acquire Generation Bio

XOMA

M&A

Takeover Bid

XOMA Royalty Corporation announced an agreement to acquire Generation Bio Co. for a cash price of $4.2913 per share at closing, plus one non-transferable contingent value right (CVR) per share.
The CVR entitles Generation Bio stockholders to potential payments including 100% of net cash at closing exceeding $29 million, a share of proceeds from Generation Bio's existing license agreement with Moderna (up to 90%), and a share of payments from the out-license or sale of Generation Bio's ctLNP delivery platform (up to 70%).
Generation Bio's board of directors unanimously approved the Merger Agreement, and stockholders representing approximately 15% of Generation Bio common stock have signed support agreements to tender their shares.
The acquisition is expected to close in February 2026.