XOMA Corporation (XOMA) investor relations material

Portfolio progress and asset development

• Expanded from one to six revenue-generating assets over two years, with 11 assets now in phase three development.

• Recent deals and acquisitions have diversified the portfolio, including key assets from Gossamer, Castle Creek, and DARE.

• Resolute and Gossamer programs are highlighted for their near-term phase three data and high royalty potential.

• AstraZeneca's PD-1 TIGIT program is high risk but backed by significant investment and multiple phase three trials.

• Portfolio includes over 130 assets, with recent additions from Twist Bioscience and a focus on early-stage opportunities.

Business model and financial strategy

• Achieved free cash flow positivity in 2024, with expectations for continued profitability as royalty receipts grow.

• Utilizes perpetual preferreds with an 8.5% dividend yield and asset-backed loans to avoid equity dilution.

• Actively reduces equity count through buybacks and redeploys cash flow into business growth.

• Focuses on early-stage assets for high-return potential, acquiring undervalued assets at low cost.

• Maintains strict risk assessment and higher entry standards for new portfolio additions.

Competitive positioning and differentiation

• Competes with larger royalty firms by offering smaller, impactful investments to biotech companies.

• Permanent capital structure allows patience and flexibility in portfolio management.

• Differentiates through early-stage pipeline focus and creative deal structures.

• Aligns management compensation with shareholder value via performance stock units, eliminating traditional options.

• Pursues acquisitions that add diversification and optionality, targeting distressed or undervalued companies.