XOMA Corporation (XOMA): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a biotech royalty aggregator operates and makes money? XOMA Royalty Corporation (XOMA), with a market cap of $239 million as of April 11, 2025, plays a unique role in the biotech industry by acquiring royalty rights and milestone payments from partnered therapeutic candidates. But how exactly does this company, which reported a trailing 12-month revenue of $10.2 million as of December 31, 2024, work, and what's the story behind its evolution from XOMA Corporation? Keep reading to find out!

XOMA Corporation (XOMA) History

XOMA's Founding Timeline

Year established

The company was founded in 1981.

Original location

The company was originally located in Berkeley, California.

Founding team members

The founders of the company include:

• Dr. Steven Duzan
• Dr. Edgar Haber

Initial capital/funding

The initial funding for the company came from venture capital.

XOMA's Evolution Milestones

XOMA's Transformative Moments

• Strategic Shift to Antibody Therapeutics: A pivotal decision was made to concentrate on antibody therapeutics, leveraging its expertise in antibody discovery and development.
• Monetization of Royalty Streams: The company strategically monetized its royalty streams, like the $225 million deal in 2020, to secure financial flexibility and focus on core strategic initiatives.
• Licensing Agreements: Licensing agreements, such as the one with Novartis in 2017, have been crucial in validating its technology and providing financial support.
• Pipeline Expansion: The company has actively worked to expand its pipeline through strategic acquisitions like Kinnate Biopharma’s pan-RAF inhibitor program, enhancing its oncology offerings.

To gain further insights into the company's principles, explore Mission Statement, Vision, & Core Values of XOMA Corporation (XOMA).

XOMA Corporation (XOMA) Ownership Structure

XOMA Corporation features a mix of institutional and retail ownership, influencing its strategic decisions and market behavior.

XOMA's Current Status

XOMA Corporation is a publicly traded company, listed on the Nasdaq Global Select Market under the ticker symbol XOMA. This status allows it to raise capital through the issuance of stock and requires it to adhere to the reporting requirements of the U.S. Securities and Exchange Commission (SEC).

XOMA's Ownership Breakdown

Understanding the ownership structure of XOMA provides insights into who has the most influence over the company's decisions. Here’s a breakdown:

XOMA's Leadership

The leadership team at XOMA is responsible for the strategic direction and operational execution of the company. Key members include:

• James R. Neal, M.D.: Chief Executive Officer
• Thomas K. Burns: Executive Vice President and Chief Financial Officer
• Dr. Rafael G. Amado, M.D.: Executive Vice President, Head of Research and Development and Chief Medical Officer

For more in-depth information on XOMA's investor profile, you can explore: Exploring XOMA Corporation (XOMA) Investor Profile: Who’s Buying and Why?

XOMA Corporation (XOMA) Mission and Values

XOMA Corporation focuses on pioneering antibody therapeutics to create value for patients, partners, and shareholders, driven by innovation and a commitment to improving health outcomes.

XOMA Corporation's Core Purpose

Official mission statement

XOMA's mission is to discover, develop, and commercialize innovative antibody-based therapeutics that address unmet medical needs. This involves:

• Leveraging its proprietary antibody discovery and development technologies.
• Advancing a portfolio of clinical and preclinical programs.
• Forging strategic partnerships to expand the reach and impact of its therapies.

Vision statement

While a specific formal vision statement may not be publicly emphasized, XOMA's actions and strategic goals suggest a vision to be a leader in the development of antibody therapeutics, recognized for:

• Innovation in antibody technology.
• Successful translation of research into effective treatments.
• Creating significant value through strategic collaborations and internal development programs.

Company slogan/tagline

XOMA does not currently have a widely publicized official slogan or tagline. However, considering their focus, a fitting informal tagline could be:

• 'Engineering Antibodies, Advancing Therapeutics.'

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XOMA Corporation (XOMA) How It Works

XOMA Corporation operates through the strategic leveraging of its antibody technologies to discover and develop therapeutic candidates, primarily through partnerships and licensing agreements. They focus on creating innovative therapies by out-licensing their technologies to other pharmaceutical and biotechnology companies, thereby generating revenue through upfront payments, milestone payments, and royalties on future sales of partnered products.

XOMA's Product/Service Portfolio

As XOMA operates under a royalty-based business model, their 'products' are essentially their licensed technologies and the potential future therapies developed using them. Here's a look at how these technologies are applied:

XOMA's Operational Framework

XOMA's operational framework is centered on innovation and strategic partnerships. Key aspects include:

• Technology Licensing: XOMA focuses on out-licensing its proprietary antibody discovery and development technologies to other pharmaceutical and biotechnology companies.
• Partnership Management: They actively manage partnerships, providing support and expertise to their licensees to maximize the potential of the licensed technologies.
• Royalty Collection: A significant portion of XOMA’s revenue comes from royalties on the sales of drugs developed using their licensed technologies. They monitor sales and enforce royalty agreements to ensure accurate and timely payments.
• Strategic Investments: XOMA strategically invests in promising biotech companies or technologies that complement their existing portfolio, enhancing their capabilities and potential revenue streams.

XOMA's Strategic Advantages

XOMA's strategic advantages stem from its innovative technologies and business model:

• Proprietary Antibody Technologies: XOMA possesses advanced antibody discovery and development technologies that enable the creation of novel therapeutic candidates.
• Royalty-Based Business Model: This model allows XOMA to generate revenue without bearing the full costs and risks associated with drug development.
• Experienced Management Team: XOMA's management team has a proven track record of successful technology licensing and partnership management.
• Diversified Revenue Streams: Revenue is derived from multiple partnered programs, reducing reliance on any single product or partner.

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XOMA Corporation (XOMA) How It Makes Money

XOMA Corporation primarily generates revenue by out-licensing its innovative antibody technologies and platforms to other pharmaceutical and biotechnology companies, allowing them to develop and commercialize new therapies. This model focuses on research and development, with revenue coming from upfront payments, milestone payments, and royalties on sales of partnered products.

XOMA Corporation's Revenue Breakdown

As XOMA operates primarily on technology licensing and partnering, its revenue streams can vary significantly from year to year based on the timing and success of its collaborations. Here's a general framework for understanding its revenue composition:

XOMA Corporation's Business Economics

XOMA's business model is centered around leveraging its proprietary antibody discovery and development technologies. Key aspects of its business economics include:

• Technology Platform: XOMA has developed a robust platform for discovering and developing therapeutic antibodies. This platform includes various technologies aimed at improving antibody properties, such as affinity, stability, and manufacturability.
• Out-Licensing Strategy: XOMA primarily generates revenue through out-licensing its antibody technologies and platforms to other pharmaceutical and biotechnology companies. This allows them to develop and commercialize new therapies.
• Revenue Generation: XOMA's revenue streams typically include:
  • Upfront Payments: Received when a licensing agreement is signed.
  • Milestone Payments: Received upon the achievement of specific development, regulatory, or commercial milestones.
  • Royalties: A percentage of the net sales of products developed using XOMA's technology.
• Cost Structure: XOMA's costs are primarily related to research and development activities, including the discovery and development of new antibody technologies and platforms. They also incur costs associated with protecting their intellectual property and managing their licensing agreements.
• Profitability: XOMA's profitability depends on its ability to secure licensing agreements with favorable terms and the success of its partners in developing and commercializing products using XOMA's technology.

XOMA Corporation's Financial Performance

Analyzing XOMA's financial performance involves looking at key metrics that reflect the company's ability to generate revenue, manage expenses, and achieve profitability. Here are some important considerations:

• Revenue Trends: Examine the trends in revenue from licensing agreements, milestone payments, and royalties. Revenue can fluctuate significantly depending on the timing and success of partnerships.
• Operating Expenses: Evaluate the company's operating expenses, including research and development (R&D) expenses, and general and administrative (G&A) expenses. R&D expenses are a critical investment in future growth.
• Cash Position: Assess XOMA's cash position and burn rate. A strong cash position is essential for funding ongoing R&D activities and managing financial obligations.
• Net Income/Loss: Track the company's net income or loss over time. XOMA, like many biotechnology companies, may experience periods of net losses as it invests heavily in R&D.
• Key Financial Metrics (based on the most recent 2024 fiscal year data):
  • Cash, cash equivalents, and marketable securities: $72.1 million as of December 31, 2024
  • Net loss: $27.3 million for the year ended December 31, 2024, or $1.77 per share
  • Revenue: XOMA's revenue is highly variable and depends on achieving milestones and executing new agreements.

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XOMA Corporation (XOMA) Market Position & Future Outlook

XOMA Corporation is strategically positioned to leverage its innovative antibody discovery and development capabilities within the biopharmaceutical sector. With a focus on developing novel therapies, XOMA aims to capitalize on unmet medical needs and deliver value to patients and shareholders alike.

Competitive Landscape

The biotechnology industry is characterized by intense competition. XOMA competes with a range of established pharmaceutical companies, specialized biotech firms, and academic institutions. The following table summarizes XOMA's position relative to key competitors:

Opportunities & Challenges

XOMA faces both opportunities and risks that could significantly impact its future performance.

Industry Position

XOMA's industry position is characterized by its unique antibody discovery platform and royalty-based business model.

• Royalty Revenue: A significant portion of XOMA's revenue comes from royalties on partnered products, providing a relatively stable income stream.
• Strategic Focus: XOMA strategically focuses on antibody discovery and out-licensing, rather than large-scale manufacturing and commercialization.
• Innovation: XOMA continuously invests in its antibody discovery platform to generate novel therapeutic candidates.

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