XOMA Corporation (XOMA): Business Model Canvas [Dec-2025 Updated]

You're digging into XOMA Corporation's business model, and frankly, you should know right away they aren't developing drugs; they are a specialized financial player that buys future drug royalties. As an analyst who's spent two decades mapping these structures, I see XOMA as a sophisticated royalty aggregator, converting biotech intellectual property into predictable cash flow, which is a smart way to play the sector. They are deploying capital-like the $\mathbf{\$25.0}$ million they spent in H1 2025-to acquire economic rights across their portfolio of over $\mathbf{100}$ assets, banking on milestones and sales, evidenced by the $\mathbf{\$30.3}$ million in royalties they collected in the first nine months of 2025. With $\mathbf{\$130.6}$ million in cash on the books as of Q3 2025, this $\mathbf{\$401}$ million market cap company offers investors a unique, non-dilutive way to get exposure to pharma upside. Check out the full Business Model Canvas below to see the precise mechanics of their value creation engine.

XOMA Corporation (XOMA) - Canvas Business Model: Key Partnerships

You're looking at the network of relationships XOMA Corporation uses to aggregate and grow its royalty streams. This is where the assets come from and where the capital to acquire them originates. It's a complex web, but the numbers show the structure.

Biotech and pharma companies developing the 100+ pipeline assets

XOMA Royalty is building its value on a growing portfolio, currently boasting a burgeoning pipeline of over 100+ earlier-stage programs. The company maintains a focus on assets in later development, with 11 assets in Phase 3 development as of November 2025.

• Secured royalty economic interests in assets from LAVA Therapeutics (announced acquisition).
• Acquired a royalty interest in D-Fi (FCX-007), a Phase 3 asset from Castle Creek Biosciences.
• XOMA Royalty contributed $5 million to Castle Creek Biosciences' $75 million syndicated royalty financing transaction in Q1 2025.

Commercial partners like Zevra Therapeutics and Rezolute Bio

The royalty receipts XOMA Corporation collects are directly tied to the commercial execution and clinical progress of its partners' assets. Growing royalty receipts reflect solid commercial execution.

Key partner updates as of late 2025:

• Zevra Therapeutics submitted a Marketing Authorization Application (MAA) to the EMA for arimoclomol for Niemann-Pick Type C. MIPLYFFA™ (arimoclomol) from Zevra Therapeutics received FDA approval in 2024.
• Rezolute Bio reconfirmed expectations to announce topline data in December 2025 from its Phase 3 ersodetug trial in congenital hyperinsulinism (HI). Topline results for ersodetug in tumor HI are expected in the second half of 2026. Rezolute, Inc. had $14.6 million in cash and equivalents as of March 31, 2025, and raised $96.9 million in net proceeds from an Underwritten Offering in April 2025.
• Gossamer Bio expects topline results from PROSERA (seralutinib) in February 2026.

Here's a look at recent cash flow from these partnerships:

Financial and legal advisors for M&A and deal structuring

XOMA Royalty uses external expertise for its acquisition and structuring activities. Davy Corporate Finance UC advised XOMA Royalty on its recent major acquisition.

Advisors for the December 2025 acquisition of Mural Oncology plc:

• Financial Advisor to XOMA Royalty: Davy Corporate Finance UC.
• U.S. and Irish Legal Advisors to XOMA Royalty: Gibson, Dunn & Crutcher LLP and Mason Hayes & Curran LLP.
• Financial Advisor to Mural Oncology: Lucid Capital Markets, LLC.

For the HilleVax acquisition (expected September 2025), Gibson, Dunn & Crutcher LLP acted as legal counsel to XOMA Royalty.

Strategic acquirers of divested assets, like the Kinnate pipeline buyer

XOMA Corporation monetizes certain assets by selling them to strategic acquirers, often retaining upside through royalties. XOMA completed the sale of the remaining Kinnate pipeline assets in April 2025.

• The total deal for the five Kinnate pipeline assets could yield up to $270 million in upfront and milestone payments, plus royalties.
• Royalty rates on commercial sales range from the low single digits to the mid-teens.
• Legacy Kinnate Contingent Value Rights (CVR) holders receive 85% of related payments until April 2, 2029.
• XOMA Royalty also acted as structuring agent for XenoTherapeutics' acquisition of ESSA Pharma.

Institutional investors and lenders providing capital for acquisitions

Capital for XOMA Royalty's acquisitions comes from a mix of debt financing and its existing investor base. The company had cash and cash equivalents of $130.6 million on September 30, 2025.

Key capital partners:

• Lenders: XOMA raised up to $140 Million in Non-Dilutive, Non-Recourse Financing from Funds Managed by Blue Owl Capital (announced December 2023). Restricted cash balance as of September 30, 2025, included $2.2 million related to the Blue Owl Loan.
• Institutional Investors: XOMA Corporation has a total of 7 investors, all institutional, including SVB and Rezolute. Major institutional shareholders as of early 2025 included Charles Schwab Investment Management Inc., MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., Russell Investments Group Ltd., Vanguard Group Inc., and JPMorgan Chase & Co.. Charles Schwab Investment Management Inc. held 23,113 shares, valued at $607K, as of February 2, 2025.
• In the first nine months of 2025, XOMA Royalty deployed $25.0 million to acquire additional assets for its portfolio.

XOMA Corporation (XOMA) - Canvas Business Model: Key Activities

You're looking at the core engine of XOMA Corporation (XOMA), the biotech royalty aggregator, as of late 2025. This is where the action happens-acquiring future economics and managing a growing portfolio of high-potential assets.

Identifying and acquiring economic rights to royalty and milestone streams

The primary activity is sourcing and securing the economic rights to future payments tied to therapeutic candidates licensed to other biotech or pharma companies. This is the lifeblood of the XOMA Royalty portfolio.

The activity is supported by significant cash flow from existing assets, as seen in the year-to-date performance:

Disciplined capital deployment for new asset acquisitions, deploying $25.0 million in H1 2025

XOMA Corporation actively deploys capital to expand its asset base, a key driver for future revenue. This deployment is strategic, balancing new purchases with managing existing capital structure.

For the first half of 2025, the deployment figures show a clear focus on growth:

• Deployed $25.0 million to acquire additional assets for its royalty and milestone portfolio during the first six months of 2025.
• Repurchased approximately 107,500 shares of common stock for a cost of $2.4 million in H1 2025.
• Paid $2.7 million in dividends on the XOMA Royalty Perpetual Preferred stocks in H1 2025.

Portfolio management and monitoring of partner clinical trial progress (e.g., Phase 3 readouts)

Managing the portfolio means tracking the underlying assets through their development milestones, especially late-stage clinical trials, which directly impact the timing and size of potential milestone payments.

Key pipeline monitoring activities as of late 2025 include:

• Monitoring Rezolute Bio's Phase 3 ersodetug trial, with topline data expected in December 2025.
• Awaiting topline results from Gossamer Bio's Phase 3 PROSERA trial of seralutunib, expected in February 2026.
• Tracking Zevra Therapeutics' Marketing Authorization Application (MAA) submission to the EMA for arimoclomol.
• Tracking the EMA regulatory decision for Day One/Ipsen's tovorafenib, which triggered a $4 million milestone payment upon acceptance of the MAA for review.

Structuring complex M&A deals, like the Mural Oncology acquisition

A significant recent activity involved executing complex mergers and acquisitions to bring entire asset packages in-house. The acquisition of Mural Oncology plc was completed on December 5, 2025.

The terms of the Mural Oncology deal highlight the structuring capability:

Financial reporting and investor relations for a $401 million market cap company

Maintaining transparency and meeting reporting obligations for a company with a market capitalization around $384.87 million (as of November 12, 2025) is a constant key activity. This involves timely disclosure of performance metrics.

Key reporting milestones in late 2025 included:

• Furnishing Form 8-K announcing Q3 2025 results on November 12, 2025.
• Reporting cash and cash equivalents of $130.6 million as of September 30, 2025.
• Reporting net income of $25.6 million for the first nine months of 2025.

XOMA Corporation (XOMA) - Canvas Business Model: Key Resources

You're looking at the core assets XOMA Corporation relies on to generate its value, which is fundamentally built on acquiring future revenue streams from other companies' drug development success. These resources are a mix of financial strength, intellectual property rights, and specialized deal-making capability.

The foundation of XOMA Corporation's model is its diversified portfolio of assets, which represents contractual rights to future payments. As of late 2025, the company reports a significant scale:

• Total assets in the royalty and milestone portfolio exceed 120 total assets.
• The pipeline includes a burgeoning set of over 100+ earlier-stage programs.
• There are 11 assets currently in Phase 3 development, with key readouts expected over the next 12-24 months.

Financial stability is maintained through a strong balance sheet. As of September 30, 2025, XOMA Corporation reported a strong cash and cash equivalents balance of $130.6 million. This figure includes $85.4 million in restricted cash. This liquidity supports ongoing business development activities without immediate dilution to shareholders.

The primary intangible assets are the contractual rights to future royalty and milestone payments. These rights are recognized on the balance sheet, and their value is subject to amortization. For the nine months ended September 30, 2025, the amortization of non-cash intangible assets totaled $2.1 million. The cash flow generated from these rights is a key metric for the business.

Here's a look at the key commercial assets driving current royalty receipts:

The company's specialized business development and financial structuring expertise is evidenced by its active deal-making. In the first nine months of 2025, XOMA Corporation deployed $25.0 million to acquire additional assets for its portfolio. Recent strategic actions include completing acquisitions of Turnstone Biologics and HilleVax, and announcing expected acquisitions of LAVA Therapeutics and Mural Oncology. The firm also acted as a structuring agent for XenoTherapeutics' acquisition of ESSA Pharma.

These commercial assets are directly translating into revenue. In the first nine months of 2025, XOMA Corporation received $43.9 million in cash receipts from royalties and commercial payments from its partners. This total comprised $30.3 million in royalties and commercial payments and $13.6 million in milestone payments and fees. For the third quarter alone, cash receipts totaled $14.3 million.

XOMA Corporation (XOMA) - Canvas Business Model: Value Propositions

You're looking at how XOMA Corporation structures the value it delivers across its unique model in late 2025. It's not about selling a drug; it's about managing a portfolio of future payments from drugs being developed by others. This approach directly addresses capital constraints in the biotech sector.

Provides non-dilutive, non-recourse funding to biotech companies

XOMA Corporation offers a specific type of capital infusion. When XOMA Corporation acquires the economic rights to future milestone and royalty payments, the selling company receives funding that does not require them to issue new equity, meaning no dilution for existing shareholders. This funding is also non-recourse, which is key for smaller firms.

The structure is designed to help companies advance their internal drug candidates or cover general corporate needs without taking on traditional debt or selling ownership stakes. This is a core component of their value proposition to sellers.

Offers investors a diversified, lower-risk exposure to biotech R&D success

For investors, XOMA Corporation acts as a single, liquid vehicle that aggregates risk across many different drug candidates. Instead of betting on one binary clinical trial outcome, you get exposure to a broad set of potential successes. As of the third quarter of 2025, XOMA Corporation has an expansive portfolio of 120-Plus Assets and growing.

This portfolio approach is designed to mitigate the binary risk inherent in single-asset biotech investments. The cash flow generated supports the model, with XOMA Corporation reporting $43.9 million in royalties and milestones received from partners in the first nine months of 2025. Of that, $30.3 million came from royalty payments related to commercial sales during that same period.

Monetizes non-core or early-stage assets for selling companies

XOMA Corporation actively acquires the economic rights to future payments associated with pre-commercial therapeutic candidates. This allows the selling companies to monetize assets that might otherwise be too early-stage or non-core to attract traditional financing or a major partnership immediately. The company has been busy executing this strategy, completing acquisitions of Turnstone Biologics and HilleVax, and announcing acquisitions of LAVA Therapeutics N.V. on November 21, 2025, and Mural Oncology plc on December 5, 2025.

In the first nine months of 2025, XOMA Corporation deployed $25.0 million to acquire additional assets for its royalty and milestone portfolio. A concrete example of this deployment was contributing $5 million to Castle Creek Biosciences' $75 million syndicated royalty financing transaction for the Phase 3 asset D-Fi (FCX-007) in Q1 2025.

Creates a single, liquid investment vehicle for a basket of drug royalties

The company's structure packages these diverse future economics into a single, publicly traded security, XOMA Corporation common stock (NASDAQ: XOMA), which is definitely more liquid than holding private, unpartnered royalty streams. This aggregation is what creates the diversified exposure for investors.

The financial results show the cash generation that underpins this vehicle:

• Cash receipts in Q1 2025 totaled $18.0 million.
• Cash receipts in the first half of 2025 totaled $29.6 million.
• The company reported net income of $2.4 million for Q1 2025.
• As of September 30, 2025, cash and cash equivalents stood at $130.6 million.

Streamlines clinical development by transferring assets to specialized partners

By acquiring the rights, XOMA Corporation effectively transfers the ongoing development and commercialization burden to its partners, who are specialized in those areas. This is a value-add for the seller, who gets cash and offloads the immediate development pressure. The success of this transfer is reflected in partner progress.

For instance, Rezolute Bio announced alignment with the FDA on a streamlined design for its ongoing Phase 3 ersodetug trial in tumor HI. Also, in Q2 2025, the acceptance of the Marketing Authorization Application (MAA) for Day One Biopharmaceuticals and Ipsen's tovorafenib by the EMA resulted in a $4 million milestone payment to XOMA Corporation.

Here's a quick look at some key pipeline events anticipated around the end of 2025/early 2026, which represent the value XOMA Corporation is holding:

Finance: draft 13-week cash view by Friday.

XOMA Corporation (XOMA) - Canvas Business Model: Customer Relationships

You're looking at how XOMA Corporation manages the entities that provide its lifeblood-the royalty streams and the capital that fuels its growth. The relationships are segmented based on the stage of the asset or the nature of the interaction.

Transactional and high-touch for new royalty stream acquisitions

Acquiring new economic interests requires a focused, high-touch approach to structure deals that provide non-dilutive funding to the seller. This is where the deal-making team engages directly to secure future cash flows. Evidence of this active acquisition strategy in 2025 includes the deployment of capital for portfolio expansion. XOMA Royalty deployed $25.0 million to acquire additional assets during the first half of 2025 alone. The relationship is cemented by closing recent transactions, such as the announced closing of the acquisition of Mural Oncology plc on December 5, 2025, and the closing of transactions to acquire LAVA Therapeutics N.V. on November 21, 2025.

Contractual and automated for ongoing royalty and milestone collection

Once an asset is acquired or a collaboration is established, the relationship shifts to a more contractual and automated collection process, driven by partner performance. The success of this automated stream is reflected in the cash receipts reported through the first nine months of 2025. The total cash receipts were $43.9 million. This inflow is segmented between commercial performance and development achievements.

Here's a breakdown of the cash flow evidence from partners for the first nine months of 2025:

The quarterly data further illustrates the transactional nature of milestone payments versus the steady stream of royalties. For the third quarter of 2025, royalty receipts alone were $14.3 million. The first quarter of 2025 showed a $4.0 million milestone payment related to the Takeda Collaboration Agreement.

Investor relations focused on transparency and value creation updates

For capital providers, XOMA Corporation maintains a relationship centered on transparent updates regarding portfolio performance and financial health. As of December 3, 2025, the market capitalization stood at approximately $383.88 million, with the stock trading around $29.77. Management emphasizes performance metrics to this customer segment, reporting a revenue growth of 29.90% and a return on equity (ROE) of 22.45% for the period. However, the focus on growth is underscored by a negative free cash flow of -$63.38 million. The company provided a comprehensive update via its Third Quarter and Year to Date 2025 Financial Results release on November 12, 2025.

Key elements XOMA Corporation communicates to investors include:

• Cash and cash equivalents balance as of September 30, 2025: $130.6 million.
• Recent corporate actions, such as the closing of the Mural Oncology plc acquisition on December 5, 2025.
• Upcoming clinical catalysts, like Rezolute Bio's expected topline data in December 2025.

Strategic, long-term relationships with key developers like Takeda and Gossamer Bio

The core of XOMA Corporation's asset base relies on deep, strategic, long-term relationships with the companies developing the underlying assets. These relationships are characterized by shared development timelines and future revenue expectations.

The relationship with Takeda is evidenced by a specific developmental milestone payment. XOMA Royalty recorded a $4.0 million payment related to a Phase 3 milestone achieved by Takeda under their Collaboration Agreement in the first quarter of 2025. This shows a direct financial tie to the partner's clinical progression.

With Gossamer Bio, the relationship is tied to the seralutinib program. Gossamer Bio expects topline results from its PROSERA Phase 3 trial in pulmonary atrial hypertension in February 2026. This future event represents a significant potential value catalyst for XOMA Corporation, demonstrating the long-term nature of these strategic dependencies.

The nature of these partner relationships can be summarized:

These partnerships are the engine for the $13.6 million in milestone payments received year-to-date through the third quarter of 2025.

XOMA Corporation (XOMA) - Canvas Business Model: Channels

You're looking at how XOMA Royalty Corporation gets its value propositions-the royalty and milestone rights-out to the market and how it connects with its investors. It's a mix of direct deal-making and public market presence.

Direct business development outreach to biotech and pharma firms

XOMA Royalty Corporation's primary channel for sourcing assets involves direct engagement with biotech and pharma firms looking for non-dilutive funding. This outreach is focused on acquiring economic rights to future payments from their partnered therapeutic candidates.

The activity level in this channel is high, as evidenced by recent portfolio expansion:

• Acquisitions closed in late 2025 include Mural Oncology plc, LAVA Therapeutics N.V., Turnstone Biologics, and HilleVax.
• The portfolio size as of the Q3 2025 report stands at over 120-Plus Assets.
• In the first nine months of 2025, XOMA Royalty deployed $25.0 million to acquire additional assets for its royalty and milestone portfolio.

Financial and legal intermediaries for sourcing and executing deals

Executing these acquisitions requires a network of specialized advisors. These intermediaries help structure the deals and navigate the legal complexities of asset transfer.

For instance, in the recent acquisition of Mural Oncology plc, which closed on December 5, 2025, XOMA Royalty was represented by specific legal and financial advisors:

Furthermore, XOMA Royalty acts as a structuring agent for other companies' transactions, such as for XenoTherapeutics' acquisition of ESSA Pharma.

Public market trading on NASDAQ (XOMA) for investor access

The public market on NASDAQ is a key channel for accessing capital and providing liquidity to existing shareholders. You can track the company under the ticker XOMA.

Here are some key figures as of late 2025:

The company's cash position on September 30, 2025, was $130.6 million, which supports operations and growth initiatives without immediate reliance on equity issuance.

Corporate website and press releases for partner and investor communication

The corporate website and official press releases serve as the formal channels for disseminating material information to partners and investors. These are the primary sources for official updates on deal flow and financial health.

Recent communications highlight the royalty stream performance, which is the ultimate output of the business model:

• Latest Financial Results reported for Q3 and Year to Date 2025 on November 12, 2025.
• Cash receipts from partners in the first nine months of 2025 totaled $43.9 million in royalties and milestones.
• Royalty receipts from commercial sales in Q3 2025 were $14.3 million.
• Net Income for the nine months ended September 30, 2025, was $25.6 million.

Finance: draft 13-week cash view by Friday.

XOMA Corporation (XOMA) - Canvas Business Model: Customer Segments

You're structuring your view of XOMA Corporation (XOMA) Royalty, and the customer segments are less about direct drug buyers and more about the entities providing the underlying value-the companies and investors whose assets XOMA acquires economic rights to. This is a financing and investment play, so the segments reflect who is selling or who is providing capital.

Small to mid-cap biotech companies needing non-dilutive capital for R&D

These are the companies that sell a piece of their future royalty stream to XOMA Royalty to fund ongoing clinical trials or general corporate needs without issuing more equity. This is XOMA Royalty's core offering to the seller. For instance, XOMA Royalty acted as structuring agent and provided financing for XenoTherapeutics' acquisition of ESSA Pharma. XOMA Royalty deployed $\$25.0$ million in the first nine months of 2025 to acquire additional assets for its royalty and milestone portfolio. The company is committed to offering bespoke solutions to companies across all of biotech, big and small.

Large pharmaceutical companies that license and commercialize the underlying assets

These are the commercial partners whose successful sales generate the actual royalty cash flow for XOMA Royalty. Growing royalty receipts reflect solid commercial execution on the part of these partners. XOMA Royalty secures economic interests in assets being developed by major players. For example, XOMA Royalty will secure an economic interest in PF-08046052, being developed by Pfizer, and JNJ-89853413, being developed by Johnson & Johnson, upon closing its acquisition of LAVA Therapeutics. The cash receipts from these partners are the lifeblood of the business model.

Here's a look at the royalty cash flow performance from these commercial partners through the third quarter of 2025:

Institutional and retail investors seeking biotech royalty exposure

These are the holders of XOMA Royalty Corporation stock and preferred stock. They are seeking the more predictable cash flows that XOMA Royalty's model aims to generate, which can buffer the volatility of traditional biotech investing. XOMA Royalty paid $\$1.4$ million in dividends on the XOMA Royalty Perpetual Preferred stocks in the third quarter of 2025. The company also has an active shareholder return program, having repurchased approximately $\mathbf{108,510}$ shares of its common stock for a cost of $\mathbf{\$2.4}$ million in the first nine months of 2025. As of November 7, 2025, the stock price was $\mathbf{\$33.19}$ and the market capitalization was $\mathbf{\$401}$ million, based on $\mathbf{12.4}$ million shares.

Companies undergoing strategic restructuring or asset divestiture (e.g., Mural Oncology)

This segment involves acquiring assets from companies that are themselves being acquired or restructured, often providing the cash component for that transaction. XOMA Royalty completed its acquisition of Mural Oncology plc on December 5, 2025. The consideration paid to Mural shareholders was $\mathbf{\$2.035}$ in cash per share. Prior to the transaction, Mural Oncology's market cap was approximately $\mathbf{\$35.38}$ million. This acquisition aligns with XOMA Royalty's strategy to expand its portfolio. The restricted cash balance as of September 30, 2025, included $\mathbf{\$39.9}$ million reserved to fund this Mural acquisition. XOMA Royalty also acted as structuring agent for XenoTherapeutics' acquisition of ESSA Pharma.

The portfolio is growing, with key assets in development:

• $\mathbf{11}$ assets in Phase 3 development as of November 2025.
• $\mathbf{100+}$ earlier-stage programs.
• Expected to have a $\mathbf{7{th}}$ royalty generating asset in $\text{4Q25}$ (Sildenafil Cream, 3.6%).

The company's focus on asset acquisition is clear from its deployment of $\mathbf{\$25.0}$ million in the first nine months of 2025 for new royalty and milestone assets.

XOMA Corporation (XOMA) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the XOMA Corporation royalty aggregator model, which is heavily weighted toward corporate overhead and asset acquisition rather than internal drug development. Here's the quick math on what it costs to run the business as of late 2025.

General and Administrative (G&A) Expenses represent a significant portion of the operating costs, reflecting the structure of a company focused on managing a portfolio of external assets. For the three months ended September 30, 2025, XOMA Royalty reported G&A expenses of $9.7 million. This compares to $8.0 million for the same period in 2024. For the nine months ended September 30, 2025, total G&A expenses reached $25.7 million.

The cost structure is heavily influenced by the strategy of acquiring future economics. The acquisition of HilleVax, Inc., finalized in September 2025, was valued at $75.36 million, structured as $1.95 in cash per share plus a non-transferable contingent value right (CVR). This type of transaction is a primary cost driver for XOMA Corporation. Separately, for the first nine months of 2025, XOMA Royalty deployed $25.0 million to acquire additional assets for its royalty and milestone portfolio.

The table below summarizes key period-specific costs for the third quarter of 2025, where available, to give you a clear view of the expense profile.

Research and Development (R&D) expenses are intentionally minimal, which is key to the aggregator model. For the three months ended September 30, 2025, R&D expenses were only $69 thousand. This is down from $0.8 million in the corresponding period of 2024. The R&D costs in 2024 were related to clinical trial costs from the Kinnate acquisition and wind-down activities.

Financing costs, specifically Interest Expense on debt like the Blue Owl Loan established in December 2023, are a fixed component. For the first quarter of 2025, the reported interest expense was $3.5 million. This expense relates directly to the royalty-backed loan. The Blue Owl Loan itself was initially drawn at $130 million principal.

Finally, the commitment to preferred shareholders results in regular cash outflows. XOMA Royalty paid $1.4 million in dividends on the XOMA Royalty Perpetual Preferred stocks during the third quarter of 2025. For the first nine months of 2025, the total dividends paid on these preferred stocks amounted to $4.1 million. The Series A preferred stock carries an 8.625% rate, and the Series B carries an 8.375% rate.

• G&A expenses for Q3 2025 included non-cash stock-based compensation expenses of $1.8 million.
• The Blue Owl Loan requires restricted cash to cover interest expense and administrative fees.
• The company had $130.6 million in cash and cash equivalents on September 30, 2025.

Finance: draft 13-week cash view by Friday.

XOMA Corporation (XOMA) - Canvas Business Model: Revenue Streams

You're looking at the core ways XOMA Corporation generates cash from its portfolio of royalty and milestone rights. It's not about selling a product directly; it's about the economics tied to your partners' success. This structure is key to understanding XOMA's financial profile as a biotech royalty aggregator.

The primary cash inflows for XOMA Corporation come from its existing portfolio of assets, which are rights to future payments associated with therapeutic candidates licensed to other companies. For the first nine months of 2025, the total cash receipts from partners amounted to $43.9 million.

This cash flow is segmented into two main categories based on the underlying asset event:

• Royalty payments from commercial sales of partnered drugs totaled $30.3 million in cash receipts for the nine months ended September 30, 2025.
• Milestone payments tied to clinical and regulatory achievements totaled $13.6 million in cash receipts for the nine months ended September 30, 2025.

Beyond direct partner payments, XOMA Corporation recognizes income from its acquisition activities, which are accounted for under specific methods. The company has also been active in structuring deals for others, such as acting as a structuring agent for XenoTherapeutics' acquisition of ESSA Pharma, which is part of the broader milestone and fee-generating activities.

Here is a breakdown of the reported income and revenues for XOMA Royalty Corporation for the nine months ended September 30, 2025, based on the condensed consolidated statements of operations (amounts in thousands):

The income from purchased receivables under the cost recovery method was $9,125 thousand for the first nine months of 2025, a significant increase from the $1,910 thousand reported for the same period in 2024. This definitely shows a shift in the composition of their recognized non-partner cash flow.