XOMA is no longer a conventional biotech royalty growth story—it is a tightly bounded merger-arbitrage trade with a $39 cash floor and potentially meaningful Tremfya litigation CVR upside.
Overview
XOMA Royalty Corporation is a specialized biotechnology royalty aggregator that provides non-dilutive, non-recourse capital to drug developers in exchange for future royalties and commercial milestones. Its cash flows are tied to globally commercialized and pipeline therapies partnered with Roche, Day One, Zevra, Organon and others. Key assets include Vabysmo, Ojemda, Miplyffa and Xaciato. The investment case is now dominated by Ligand’s pending $39 cash acquisition plus a litigation-linked CVR tied to Janssen’s Tremfya, making XOMA primarily a merger-arbitrage and legal-option opportunity.