XOMA Corporation (XOMA) Jones Healthcare and Technology Innovation Conference 2025 summary

Business model and strategy

• Operates as a biotech royalty aggregator, acquiring at-risk future entitlements of milestones and royalties from partnerships between biotech companies.

• Maintains a scalable, low-cost infrastructure with a 13-person team and annual costs around $20 million.

• Focuses on building a diversified portfolio to disaggregate biotech risk and generate uncorrelated cash flows.

• Since 2017, has received over $120 million in milestones, funding most operations.

• Prioritizes non-dilutive capital solutions and equity protection for investors.

Portfolio composition and growth

• Holds over 130 assets, including six commercial royalties and 11 programs in phase III or registration.

• Key commercial assets include VABYSMO, OJEMDA, and MIPLYFFA, which drive growth and receipts.

• Acquired OJEMDA royalty during phase II, now a growth driver in pediatric brain cancer.

• Acquired a mid-single-digit royalty on MIPLYFFA for $5 million upfront, now a leading rare disease launch.

• Recent acquisitions include 60 preclinical royalties from Twist Bioscience and a royalty on seralutinib via Pulmokine acquisition.

Differentiation and market positioning

• Targets earlier-stage assets where others avoid, leveraging patience as a public company to absorb binary risk.

• Offers an alternative to equity and debt financing, providing non-dilutive capital without covenants.

• Competes by being a patient, long-term holder, unlike typical 10-year fund structures.

• Focuses on assets with long IP lives, high unmet need, and differentiated market positions.

• Uses M&A as a tool to access undervalued royalty streams.