Press Release: XOMA Royalty Reports Third Quarter and Year to Date 2025 Financial Results and Highlights Recent Business Achievements

Dow Jones11-12

Business development: Secures royalty economic interests in two early stage partnered assets through XOMA Royalty's announced expected acquisition of LAVA Therapeutics.

Company acquisitions: --Completed XOMA Royalty's acquisitions of Turnstone Biologics and HilleVax; -- announced acquisitions of LAVA Therapeutics and Mural Oncology; -- acted as structuring agent for XenoTherapeutics' acquisition of ESSA Pharma.

Key Pipeline advancements: -- Zevra Therapeutics submitted a Marketing Authorization Application $(MAA)$ with the European Medicines Agency $(EMA)$ seeking marketing approval for arimoclomol as a treatment for Niemann-Pick Type C; -- Rezolute Bio reconfirmed its expectations to announce topline data in December from its Phase 3 ersodetug trial in patients with congenital hyperinsulinism $(HI)$ and announced alignment with FDA on streamlined design for ongoing Phase 3 trial of ersodetug in tumor HI; --Gossamer Bio expects topline results from PROSERA, its Phase 3 trial of seralutunib in pulmonary atrial hypertension (PAH), in February 2026.

Cash receipts: In the first nine months of 2025, XOMA Royalty received $43.9 million in royalties and milestones from its partners, including $14.3 million from royalties during the third quarter.

EMERYVILLE, Calif., Nov. 12, 2025 (GLOBE NEWSWIRE) -- XOMA Royalty Corporation $(XOMA)$, the biotech royalty aggregator, reported its 2025 third quarter and year to date financial results and highlighted recent actions that have the potential to deliver additional shareholder value.

"We continue to execute on innovative ways to increase optionality within our portfolio while maintaining a healthy cash balance and limiting dilution to our shareholders," stated Owen Hughes, Chief Executive Officer of XOMA Royalty. "Growing royalty receipts reflect solid commercial execution on the part of our partners. We look forward to several clinical readouts over the coming months and quarters that, if positive, can meaningfully shape our business trajectory."

Royalty and Milestone Acquisitions

 
Company            Asset and Transaction Detail 
-----------------  ----------------------------------------------------------- 
LAVA Therapeutics  XOMA Royalty will secure an economic interest in 
                   PF-08046052, which is being developed by Pfizer, and 
                   JNJ-89853413, which is being developed by Johnson & 
                   Johnson, upon closing its acquisition of LAVA. 
 

Company Acquisitions

 
Company                                 Transaction Details 
--------------------------------------  -------------------------------------- 
Turnstone Biologics                     XOMA Royalty acquired Turnstone for 
                                        $0.34 in cash per share of Turnstone 
                                        common stock plus one non-transferable 
                                        contingent value right $(CVR)$. 
HilleVax                                XOMA Royalty acquired HilleVax for a 
                                        cash payment of $1.95 per share plus a 
                                        non-transferable CVR that entitles 
                                        holders to receive certain potential 
                                        payments. 
LAVA Therapeutics                       XOMA Royalty will acquire LAVA for (i) 
                                        an initial cash amount per share of 
                                        $1.04 plus (ii) a non-transferable CVR 
                                        per share representing the right to 
                                        receive certain cash payments, 
                                        including $(A)$ the previously announced 
                                        rights to receive, among other things, 
                                        75% of the net proceeds related to 
                                        LAVA's two partnered assets plus 75% 
                                        of any net proceeds from any out 
                                        license or sale of LAVA's unpartnered 
                                        programs, plus $(B)$ a new right to 
                                        receive up to approximately $0.23 per 
                                        CVR depending on the final 
                                        determination after closing of certain 
                                        potential liabilities. 
Mural Oncology                          XOMA Royalty will acquire Mural 
                                        Oncology through its wholly owned 
                                        subsidiary XRA 5 Corp. for between 
                                        $2.035 and $2.24 in cash per share. 
                                        The acquisition is expected to close 
                                        in the fourth quarter of 2025.(1) (,) 
                                        (2) 
XenoTherapeutics Acquisition of ESSA    XOMA Royalty acted as structuring 
Pharma                                  agent for XenoTherapeutics' completed 
                                        acquisition of ESSA Pharma. 
 

Pipeline Partner Updates through November 10, 2025

 
Partner                Event 
---------------------  ------------------------------------------------------- 
Rezolute               In September, Rezolute announced it had achieved 
                       alignment with FDA on a significantly streamlined 
                       clinical development path for its ongoing Phase 3 study 
                       (upLIFT) of ersodetug for the treatment of tumor HI. 
                       Topline results are expected in the second half of 
                       2026.(3) 
Takeda                 The first patient was dosed in Takeda's Phase 3 
                       clinical trial investigating mezagitamab as a treatment 
                       for adults with IgA Nephropathy. 
Zevra Therapeutics     On July 28, Zevra announced it had submitted an MAA to 
                       EMA for the evaluation of arimoclomol for the treatment 
                       of Niemann-Pick Disease Type C (NPC)(4) . 
Gossamer Bio           Activated first clinical site for the global, 
                       registrational Phase 3 SERANATA study examining 
                       seralutinib in patients with pulmonary hypertension 
                       associated with interstitial lung disease (PH-ILD) in 
                       the fourth quarter of 2025(5) . 
Daré Biosciences  Announced positive interim safety and efficacy results 
                       from its ongoing Phase 3 clinical trial evaluating the 
                       contraceptive effectiveness, safety, and acceptability 
                       of Ovaprene$(R)$, an investigational monthly, 
                       hormone-free intravaginal contraceptive.(6) 
 

Anticipated Partner Events of Note through Mid-2026

 
Partner                     Event 
--------------------------  -------------------------------------------------- 
Rezolute                    Announces topline data in December 2025(7) from 
                            sunRIZE Phase 3 clinical trial, which is 
                            investigating ersodetug in infants and children 
                            with congenital HI. 
Gossamer Bio                Publishes topline results from the Phase 3 PROSERA 
                            Study evaluating seralutinib in Functional Class 
                            II and III PAH patients(5) . 
Daré Bioscience        Makes DARE to PLAY$(TM)$ Sildenafil Cream available 
                            commercially via prescription in the fourth 
                            quarter of 2025 as a compounded drug under Section 
                            503B of the Federal Food, Drug, and Cosmetic 
                            Act.(8) Commences one of two registrational Phase 
                            3 clinical trials investigating Sildenafil Cream, 
                            3.6%, for the treatment of female sexual arousal 
                            disorder(9) . Discussions with FDA regarding 
                            endpoint assessment for Phase 3 clinical studies 
                            of Sildenafil Cream, 3.6% continue(8) . 
Day One Biopharmaceuticals  Per the Day One conference call held on November 
                            4, 2025, Ipsen, Day One's partner outside the 
                            U.S., expects to receive EMA regulatory decision 
                            on its application to commercialize tovorafenib in 
                            the European Union. 
 

(1) https://investors.xoma.com/news-events/press-releases/detail/482/mural-oncology-announces-entry-into-agreement-to-be

(2) http://ml.globenewswire.com/Resource/Download/538d82a8-0fae-4d41-8687-71845b9b67c2

(3) https://ir.rezolutebio.com/news/detail/361/rezolute-announces-alignment-with-fda-on-streamlined-design-for-ongoing-phase-3-trial-of-ersodetug-in-tumor-hyperinsulinism

(4) https://investors.zevra.com/news-releases/news-release-details/zevra-therapeutics-submits-marketing-authorization-application

(5) https://ir.gossamerbio.com/news-releases/news-release-details/gossamer-bio-announces-third-quarter-2025-financial-results-and

(6) https://ir.darebioscience.com/news-releases/news-release-details/positive-interim-phase-3-results-highlight-potential-ovaprener

(7) https://ir.rezolutebio.com/news/detail/366/rezolute-reports-first-quarter-fiscal-2026-financial-results-and-provides-business-update

(8) https://ir.darebioscience.com/news-releases/news-release-details/dare-bioscience-reports-second-quarter-2025-financial-results

(9) https://ir.darebioscience.com/news-releases/news-release-details/dare-bioscience-announces-phase-3-plans-sildenafil-cream-36

Third Quarter and Year to Date 2025 Financial Results

Tom Burns, Chief Financial Officer of XOMA Royalty, commented, "In the first nine months of 2025, we have received $43.9 million in cash from partners, of which $30.3 million were royalty payments related to commercial sales and $13.6 million in milestone payments and fees. In the third quarter, we received $14.3 million in cash from our partners' commercial sales. With well-executed commercialization efforts by our partners and the emergence of new commercial opportunities from within our portfolio, XOMA Royalty has the potential to become a self-sustaining entity from royalties alone over the near term."

Income and Revenue: Income and revenue for the three and nine months ended September 30, 2025, were $9.4 million and $38.4 million, respectively, as compared with $7.2 million and $19.8 million for the corresponding periods of 2024. The increase in both periods presented was primarily driven by increased income related to VABYSMO and OJEMDA.

Research and Development (R&D) Expenses: R&D expenses for the three and nine months ended September 30, 2025, were $69 thousand and $1.4 million, respectively, compared with $0.8 million and $2.0 million for each of the corresponding periods of 2024. R&D expenses in the first quarter of 2025 and the three- and nine-month periods of 2024 were related to the clinical trial costs incurred subsequent to XOMA Royalty's acquisition of Kinnate in April 2024 related to KIN-3248 and the associated wind-down activities.

General and Administrative (G&A) Expenses: G&A expenses for the three and nine months ended September 30, 2025, were $9.7 million and $25.7 million, respectively, as compared with $8.0 million and $27.5 million for the corresponding periods of 2024. The increase of $1.7 million for the three months ended September 30, 2025, as compared to the same period in 2024, was primarily due to an increase in business development and deal-related costs, partially offset by a decrease in stock-based compensation expense. For the nine months ended September 30, 2025, the decrease of $1.8 million, as compared to the same period in 2024, was primarily due to costs related to exit packages for Kinnate senior leadership in the second quarter of 2024 and a decrease in stock-based compensation expense, partially offset by an increase in business development and deal-related costs.

XOMA Royalty's G&A expenses included non-cash stock-based compensation expenses during the three and nine months ended September 30, 2025, of $1.8 million and $5.4 million, respectively, as compared to $2.6 million and $8.1 million for the corresponding periods of 2024. The 2024 periods reflect non-cash stock-based compensation related to the appointment of Mr. Hughes to full-time Chief Executive Officer and issuance of performance stock units.

Credit Losses on Purchased Receivables: During the nine months ended September 30, 2024, XOMA Royalty recorded one-time, non-cash credit losses on purchased receivables associated with the Aronora and Agenus assets. To date, there have been no credit losses in 2025.

Amortization of Intangible Assets: Amortization of intangible assets relates to the IP acquired in the Company's acquisitions of Pulmokine in November 2024 and the mezagitamab economics from the BioInvent transaction in May 2025. Amortization of non-cash intangible assets were $0.9 million and $2.1 million for the three and nine months ended September 30, 2025.

Gains on Acquisitions: In the third quarter of 2025, XOMA Royalty recorded gains on acquisitions of $17.9 million for HilleVax and $1.8 million for Turnstone.

Interest Expense: For the three and nine months ended September 30, 2025, interest expense was $3.3 million and $10.0 million, respectively, as compared with $3.5 million and $10.4 million for the corresponding periods of 2024. Interest expense relates to the Blue Owl Loan established in December 2023.

Other Income, net: For the three and nine months ended September 30, 2025, other income, net was $0.7 million and $8.5 million, respectively, as compared with $1.9 million and $5.9 million for the corresponding periods of 2024.

Net Income: XOMA Royalty reported net income of $14.1 million and $25.6 million for the three and nine months ended September 30, 2025, as compared to net losses of $17.2 million and $9.9 million in the corresponding periods of 2024.

Cash Position: On September 30, 2025, XOMA Royalty had cash and cash equivalents of $130.6 million, including $85.4 million in restricted cash. The restricted cash balance included $43.3 million related to the assumed HilleVax lease, $39.9 million reserved to fund the Mural acquisition, and $2.2 million related to the Blue Owl Loan. Cash and cash equivalents of $106.4 million as of December 31, 2024, included $4.8 million in restricted cash related to the Blue Owl Loan.

In the third quarter of 2025, XOMA Royalty received $14.3 million in cash receipts from royalties and commercial payments and paid $1.4 million in dividends on the XOMA Royalty Perpetual Preferred stocks. In the first nine months of 2025, XOMA Royalty received $43.9 million in cash receipts, including $30.3 million in royalties and commercial payments and $13.6 million in milestone payments and fees. During the first nine months of 2025, XOMA Royalty deployed $25.0 million to acquire additional assets for its royalty and milestone portfolio, repurchased approximately 108,510 shares of its common stock for a cost of $2.4 million, and paid $4.1 million in dividends on the XOMA Royalty Perpetual Preferred stocks.

About XOMA Royalty Corporation

XOMA Royalty is a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. XOMA Royalty acquires the potential future economics associated with pre-commercial and commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. When XOMA Royalty acquires the future economics, the seller receives non-dilutive, non-recourse funding they can use to advance their internal drug candidate(s) or for general corporate purposes. The Company has an extensive and growing portfolio of assets (asset defined as the right to receive potential future economics associated with the advancement of an underlying therapeutic candidate). For more information about the Company and its portfolio, please visit www.xoma.com or follow XOMA Royalty Corporation on LinkedIn.

Forward-Looking Statements/Explanatory Notes

Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the timing and amount of potential commercial payments to XOMA Royalty and other developments related to VABYSMO(R) (faricimab-svoa), OJEMDA(TM) (tovorafenib), MIPLYFFA(TM) (arimoclomol), XACIATO(TM) (clindamycin phosphate) vaginal gel 2%, IXINITY(R) [coagulation factor IX (recombinant)], DSUVIA(R) (sufentanil sublingual tablet), and Sildenafil Cream, 3.6%; the potential occurrences of the events listed under "Anticipated 2025 Events of Note"; the anticipated timings of regulatory filings and approvals related to assets in XOMA Royalty's portfolio; and the potential of XOMA Royalty's portfolio of partnered programs and licensed technologies generating substantial milestone and royalty proceeds over time. In some cases, you can identify such forward-looking statements by terminology such as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project, " "expect," "may," "will", "would," "could" or "should," the negative of these terms or similar expressions. These forward-looking statements are not a guarantee of XOMA Royalty's performance, and you should not place undue reliance on such statements. These statements are based on assumptions that may not prove accurate, and actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry, including those related to the fact that our product candidates subject to out-license agreements are still being developed, and our licensees may require substantial funds to continue development which may not be available; we do not know whether there will be, or will continue to be, a viable market for the products in which we have an ownership or royalty interest; and if the therapeutic product candidates to which we have a royalty interest do not receive regulatory approval, our third-party licensees will not be able to market them. Other potential risks to XOMA Royalty meeting these expectations are described in more detail in XOMA Royalty's most recent filing on Form 10-Q and in other filings with the Securities and Exchange Commission. Consider such risks carefully when considering XOMA Royalty's prospects. Any forward-looking statement in this press release represents XOMA Royalty's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA Royalty disclaims any obligation to update any forward-looking statement, except as required by applicable law.

EXPLANATORY NOTE: Any references to "portfolio" in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development. Any references to "assets" in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.

As of the date of this press release, the commercial assets in XOMA Royalty's milestone and royalty portfolio are VABYSMO(R) (faricimab-svoa), OJEMDA(TM) (tovorafenib), MIPLYFFA(TM) (arimoclomol), XACIATO(TM) (clindamycin phosphate) vaginal gel 2%, IXINITY(R) [coagulation factor IX (recombinant)], and DSUVIA(R) (sufentanil sublingual tablet). All other assets in the milestone and royalty portfolio are investigational compounds. Efficacy and safety have not been established. There is no guarantee that any of the investigational compounds will become commercially available.

 
                   XOMA ROYALTY CORPORATION 
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                         (unaudited) 
      (in thousands, except share and per share amounts) 
 
                     Three Months Ended     Nine Month Ended 
                        September 30,         September 30, 
                     -------------------  -------------------- 
                       2025      2024       2025       2024 
Income and 
Revenues: 
  Income from 
   purchased 
   receivables 
   under the EIR 
   method            $ 6,962   $  5,423   $ 19,039   $  9,985 
  Income from 
   purchased 
   receivables 
   under the cost 
   recovery method     1,857      1,040      9,125      1,910 
  Revenue from 
   contracts with 
   customers             225         25      9,250      6,050 
  Revenue 
   recognized under 
   units-of-revenue 
   method                307        709        978      1,828 
    Total income 
     and revenues      9,351      7,197     38,392     19,773 
                      ------    -------    -------    ------- 
 
Operating expenses: 
  Research and 
   development            69        817      1,431      2,011 
  General and 
   administrative      9,734      8,020     25,682     27,485 
  Credit losses on 
   purchased 
   receivables             -     14,000          -     23,000 
  Amortization of 
   intangible 
   assets                878          -      2,077          - 
    Total operating 
     expenses         10,681     22,837     29,190     52,496 
                      ------    -------    -------    ------- 
 
    Income (Loss) 
     from 
     operations       (1,330)   (15,640)     9,202    (32,723) 
 
Other income 
(expense) 
  Gains on 
   acquisitions       18,004          -     18,004     19,316 
  Change in fair 
   value of 
   embedded 
   derivative 
   related to RPA          -          -          -      8,100 
  Interest expense    (3,301)    (3,493)   (10,004)   (10,446) 
  Other income, net      727      1,890      8,456      5,900 
                      ------    -------    -------    ------- 
Net income           $14,100   $(17,243)  $ 25,658   $ (9,853) 
Income tax expense   $   (49)  $      -   $    (49)  $      - 
Net income (loss)    $14,051   $(17,243)  $ 25,609   $ (9,853) 
                      ======    =======    =======    ======= 
 
Net income (loss) 
 available to 
 (attributable to) 
 common 
 stockholders, 
 basic               $ 8,981   $(18,611)  $ 15,192   $(13,957) 
                      ======    =======    =======    ======= 
Basic net income 
 per share 
 available to 
 common 
 stockholders        $  0.74   $  (1.59)  $   1.26   $  (1.20) 
                      ======    =======    =======    ======= 
Weighted average 
 shares used in 
 computing basic 
 net income per 
 share available to 
 common 
 stockholders         12,137     11,712     12,038     11,645 
                      ======    =======    =======    ======= 
 
Net income (loss) 
 available to 
 (attributable to) 
 common 
 stockholders, 
 diluted             $12,683   $(18,611)  $ 21,505   $(13,957) 
                      ======    =======    =======    ======= 
Diluted net income 
 per share 
 available to 
 common 
 stockholders        $  0.70   $  (1.59)  $   1.20   $  (1.20) 
                      ======    =======    =======    ======= 
Weighted average 
 shares used in 
 computing diluted 
 net income per 
 share available to 
 common 
 stockholders         18,141     11,712     17,932     11,645 
                      ======    =======    =======    ======= 
 
 
 
                     XOMA ROYALTY CORPORATION 
              CONDENSED CONSOLIDATED BALANCE SHEETS 
                           (unaudited) 
        (in thousands, except share and per share amounts) 
 
                                      September 30,   December 31, 
                                            2025          2024 
              ASSETS 
Current assets: 
  Cash and cash equivalents           $      45,189   $   101,654 
  Short-term restricted cash                 45,288         1,330 
  Investment in equity securities             1,521         3,529 
  Trade and other receivables, net            3,573         1,839 
  Short-term royalty and commercial 
   payment receivables under the 
   EIR method                                13,269        14,763 
  Short-term royalty and commercial 
   payment receivables under the 
   cost recovery method                         900           413 
  Prepaid expenses and other 
   current assets                               967         2,076 
                                         ----------    ---------- 
      Total current assets                  110,707       125,604 
 
  Long-term restricted cash                  40,076         3,432 
  Property and equipment, net                    24            32 
  Operating lease right-of-use 
   assets                                       272           319 
  Long-term royalty and commercial 
   payment receivables under the 
   EIR method                                 4,678         4,970 
  Long-term royalty and commercial 
   payment receivables under the 
   cost recovery method                      57,864        55,936 
  Exarafenib milestone asset                  3,500         3,214 
  Investment in warrants                        595             - 
  Intangible assets, net                     44,556        25,909 
  Other assets - long term                      879         1,861 
      Total assets                    $     263,151   $   221,277 
                                         ==========    ========== 
 
LIABILITIES, CONVERTIBLE PREFERRED 
  STOCK AND STOCKHOLDERS' EQUITY 
Current liabilities: 
  Accounts payable                    $       2,654   $     1,053 
  Accrued and other liabilities               4,134         5,752 
  Contingent consideration under 
   RPAs, AAAs, and CPPAs                          -         3,000 
  Operating lease liabilities                 2,508           446 
  Unearned revenue recognized under 
   units-of-revenue method                    1,320         1,361 
  Preferred stock dividend accrual            1,368         1,368 
  Current portion of long-term debt          14,345        11,394 
  Contingent value rights 
   liabilities - current portion              1,976             - 
      Total current liabilities              28,305        24,374 
 
  Unearned revenue recognized under 
   units-of-revenue method -- 
   long-term                                  3,473         4,410 
  Exarafenib milestone contingent 
   consideration                              3,500         3,214 
  Long-term operating lease 
   liabilities                               20,678           483 
  Long-term debt                             94,382       106,875 
  Contingent value rights 
   liabilities - long-term                    4,807             - 
  Deferred tax liability                         49             - 
      Total liabilities                     155,194       139,356 
                                         ----------    ---------- 
 
Convertible preferred stock, $0.05 
 par value, 5,003 shares 
 authorized, issued and outstanding 
 as of September 30, 2025 and 
 December 31, 2024                           20,019        20,019 
 
Stockholders' equity: 
  8.625% Series A cumulative, 
   perpetual preferred stock, $0.05 
   par value, 984,000 shares 
   authorized, issued and 
   outstanding as of September 30, 
   2025 and December 31, 2024                    49            49 
  8.375% Series B cumulative, 
  perpetual preferred stock, $0.05 
  par value, 3,600 shares 
  authorized, 1,600 shares issued 
  and outstanding as of September 
  30, 2025 and December 31, 2024                 --            -- 
  Common stock, $0.0075 par value, 
   277,333,332 shares authorized, 
   12,310,300 and 11,952,377 shares 
   issued and outstanding as of 
   September 30, 2025 and December 
   31, 2024, respectively                        92            90 
  Additional paid-in capital              1,301,542     1,298,747 
  Accumulated other comprehensive 
   income                                       121            73 
  Accumulated deficit                    (1,213,866)   (1,237,057) 
                                         ----------    ---------- 
  Total stockholders' equity                 87,938        61,902 
                                         ----------    ---------- 
      Total liabilities, 
       convertible preferred stock 
       and stockholders' equity       $     263,151   $   221,277 
                                         ==========    ========== 
 
 
 
 
                         XOMA ROYALTY CORPORATION 
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                               (unaudited) 
                              (in thousands) 
 
                                       Nine Months Ended September 30, 
                                           2025                2024 
Cash flows from operating 
activities: 
  Net income                        $         25,609      $      (9,853) 
  Adjustments to reconcile net 
  income to net cash provided by 
  (used in) operating 
  activities: 
    Adjustment for income from 
     EIR method purchased 
     receivables                                 627             (9,985) 
    Stock-based compensation 
     expense                                   5,358              8,136 
    Gains on acquisitions                    (18,004)           (19,316) 
    Credit losses on purchased 
     receivables                                  --             23,000 
    Gain on sale of equity 
     securities                               (3,663)                -- 
    Income tax expense                            49                 -- 
    Common stock contribution to 
     401(k)                                      141                118 
    Amortization of intangible 
    assets                                     2,077                 -- 
    Depreciation                                   8                  8 
    Accretion of long-term debt 
     discount and debt issuance 
     costs                                     1,136                996 
    Non-cash lease expense                        47                 45 
    Change in fair value of 
     equity securities                        (1,230)              (624) 
    Change in fair value of 
     available-for-sale debt 
     securities classified as 
     cash equivalents                             49                104 
    Change in fair value of 
    derivatives                                   10                 -- 
    Changes in assets and 
    liabilities: 
     Trade and other receivables, 
      net                                     (1,187)               (41) 
     Prepaid expenses and other 
      assets                                   1,839                (72) 
     Accounts payable and accrued 
      liabilities                             (3,248)            (1,348) 
     Operating lease liabilities                (268)              (185) 
     Unearned revenue recognized 
      under units-of-revenue 
      method                                    (978)            (1,828) 
                                       -------------       ------------ 
      Net cash provided by (used 
       in) operating activities                8,372            (10,845) 
                                       -------------       ------------ 
 
Cash flows from investing 
activities: 
  Net cash acquired in Kinnate 
   acquisition                                    --             18,926 
  Net cash, cash equivalents and 
  restricted cash acquired in 
  Turnstone acquisition                        3,943                 -- 
  Net cash, cash equivalents and 
  restricted cash acquired in 
  HilleVax acquisition                        46,832                 -- 
  Payments of consideration under 
   RPAs, AAAs, and CPPAs                      (8,000)           (37,000) 
  Receipts under RPAs, AAAs, and 
   CPPAs                                       3,139             26,263 
  Payment for BioInvent 
   contract-based intangible 
   asset                                     (20,725)                -- 
  Payment of contingent 
   consideration related to 
   Kinnate IP asset                             (550)                -- 
  Purchase of property and 
   equipment                                      --                (17) 
  Purchase of equity securities                  (99)                -- 
  Sale of equity securities                    6,999                 -- 
      Net cash used in investing 
       activities                             31,539              8,172 
                                       -------------       ------------ 
 
Cash flows from financing 
activities: 
  Principal payments -- debt                 (10,598)            (6,902) 
  Debt issuance costs and loan 
   fees paid in connection with 
   long-term debt                                (80)              (740) 
  Payment of preferred stock 
   dividends                                  (4,104)            (4,104) 
  Repurchases of common stock                 (2,395)               (13) 
  Proceeds from exercise of 
   options and other share-based 
   compensation                                3,422              4,127 
  Taxes paid related to net share 
   settlement of equity awards                (2,019)            (2,429) 
      Net cash used in financing 
       activities                            (15,774)           (10,061) 
                                       -------------       ------------ 
 
Net increase (decrease) in cash, 
 cash equivalents, and restricted 
 cash                                         24,137            (12,734) 
Cash, cash equivalents, and 
 restricted cash at the beginning 
 of the period                               106,416            159,550 
Cash, cash equivalents, and 
 restricted cash at the end of 
 the period                         $        130,553      $     146,816 
                                       =============       ============ 
 
Supplemental Cash Flow 
Information: 
  Cash paid for interest            $         11,906      $       9,985 
  Cash paid for taxes               $            277      $          -- 
Non-cash investing and financing 
activities: 
  Accrual of contingent value 
   rights liability in the 
   Turnstone acquisition            $          1,110      $          -- 
  Accrual of contingent value 
   rights liability in the 
   HilleVax acquisition             $          5,673      $          -- 
  Right-of-use assets obtained in 
   exchange for operating lease 
   liabilities in the HilleVax 
   acquisition                      $         22,525      $          -- 
  Relative fair value basis 
   reduction of right-of-use 
   assets in the HilleVax 
   acquisition                      $        (22,525)     $          -- 
  Transaction costs in connection 
   with the Turnstone acquisition 
   included in accounts payable     $             92      $          -- 
  Transaction costs in connection 
   with the HilleVax acquisition 
   included in accounts payable 
   and accrued expenses             $            449      $          -- 
  Excise tax accrual due to stock 
   repurchases                      $             24      $          -- 
  Preferred stock dividend 
   accrual                          $          1,368      $       1,368 
  Estimated fair value of the 
   Exarafenib milestone asset       $             --      $       2,922 
  Estimated fair value of the 
   Exarafenib milestone 
   contingent consideration         $             --      $       2,922 
  Right-of-use assets obtained in 
   exchange for operating lease 
   liabilities in the Kinnate 
   acquisition                      $             --      $         824 
  Relative fair value basis 
   reduction of rights-of-use 
   assets in the Kinnate 
   acquisition                      $             --      $        (824) 
  Accrual of contingent 
   consideration under the 
   Affitech CPPA                    $             --      $       3,000 
  Accrual of contingent 
   consideration under the LadRX 
   AAA                              $             --      $       1,000 
 
 
 
Investor contact:         Media contact: 
Juliane Snowden           Kathy Vincent 
XOMA Royalty Corporation  KV Consulting & Management 
+1-646-438-9754           kathy@kathyvincent.com 
juliane.snowden@xoma.com 
 

(END) Dow Jones Newswires

November 12, 2025 07:30 ET (12:30 GMT)

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