XOMA Royalty Corp (NASDAQ: XOMA) is a biotechnology royalty aggregator that acquires rights to future milestone payments, royalties, and commercial payments tied to drug candidates in clinical development or recently commercialized. The company makes money by purchasing these rights from third parties, recording them as long-term royalty receivables, and collecting cash flows as partner products advance through development or generate commercial sales. XOMA operates with 14 full-time employees as of March 11, 2026, relying heavily on outsourcing for accounting, financial reporting, and human resources. Its income streams depend on the clinical and commercial success of its partners' and licensees' product candidates, including developmental and regulatory milestones. The company also holds intangible assets from acquisitions of Pulmokine and LAVA, as well as a contract-based BioInvent intangible asset. Royalty rates on some agreements step down following patent expiration or revocation.

Revenue model

Royalty and milestone aggregator: XOMA purchases rights to receive portions of future developmental, regulatory, and commercial sales milestone payments, royalties, and option fees from third-party drug developers. These purchased rights are recorded as long-term royalty receivables and recognized using the effective interest rate method under ASC 310.

Products and services

Rights to future milestone payments, royalties, and commercial payments on clinical-stage and recently commercialized pharmaceutical products. Intangible assets include IP from the Pulmokine acquisition, a contract-based BioInvent intangible asset, and IP from the LAVA acquisition.

Customers and end markets

Counterparties are biopharmaceutical companies and licensees that generate milestone and royalty payments. End markets are pharmaceutical and biotechnology drug development, with income contingent on clinical trial outcomes and regulatory approvals.

Value-chain role

Royalty acquirer and passive financial interest holder. XOMA does not conduct drug development, manufacturing, or commercialization directly. It acquires contractual rights to cash flows from partners who develop and commercialize the underlying products.

Geographic exposure

Operations subject to U.S. Foreign Corrupt Practices Act and other anti-corruption, export control, and trade sanctions laws, indicating activity across multiple jurisdictions. No specific revenue breakdown by geography is disclosed in the filing excerpts.

Source: SEC 10-K, filed 2026-03-18

Industry: Pharmaceutical Preparations Peers: Fennec Pharmaceuticals Inc Lineage Cell Therapeutics Inc Compass Therapeutics Inc. Gritstone bio, Inc. Kronos Bio, Inc. MacroGenics Inc Rigel Pharmaceuticals Inc Shuttle Pharmaceuticals Holdings Inc Viking Therapeutics Inc