XOMA Corporation (XOMA) Oppenheimer 35th Annual Healthcare Life Sciences Conference (Virtual) 2025 summary

Business model evolution and differentiation

• Transitioned from drug development to royalty aggregation in 2017, focusing on building a diversified portfolio across all drug development stages.

• Willing to underwrite clinical risk from preclinical to commercial stages, unlike many competitors.

• Leverages permanent capital structure to be patient and opportunistic in acquiring royalties.

• Maintains a broad portfolio with over 100 assets in early stages and several in late-stage or commercial phases.

• Focuses on smaller, creative deals and maintains flexibility in transaction structuring.

Investment strategy and risk management

• Uses proprietary databases and industry relationships to source and diligence opportunities.

• Relies on a network of consultants and former employees for technical expertise, especially in antibody assets.

• Prioritizes risk assessment by asking how much capital is at risk and diversifies through basket deals.

• Structures deals around milestones to recycle capital and mitigate binary risk.

• Focuses on intellectual property, market sustainability, and potential disruptors during diligence.

Portfolio focus and deal sourcing

• Targets rare diseases, immunology, and neuro indications, often in areas overlooked by mainstream investors.

• Remains indication-agnostic but seeks opportunities where early investment can yield outsized returns.

• Increasingly pursues synthetic royalties, aiming for 20%-30% of deal flow in the next 1-2 years.

• Uses industry presence and relationships to generate deal flow and maintain a reputation as a disciplined, credible counterparty.