Xoma Royalty Corporation · NASDAQ:XOMA
Xoma Royalty — Investor Presentation (May 2025)
31 slides from Xoma Royalty's investor presentation, May 2025
Slide 1: Corporate Presentation
CORPORATE PRESENTATION THE ROYALTY NASDAQ COMMON: XOMA AGGREGATOR NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO FOR BIOTECH COMPANIES MAY 2025
Slide 2: Disclaimers
DISCLAIMERS Certain statements in this presentation are forward-looking statements XOMA Royalty’s views only as of the date of this presentation and within the meaning of Section 27A of the Securities Act of 1933 and should not be relied upon as representing its views as of any Section 21E of the Se
Slide 3: XOMA Royalty – What We Do
XOMA ROYALTY – WHAT WE DO Royalties Science Milestones Structuring The Biotech Royalty Aggregator 3
Slide 4: Building the XOMA Royalty Business
BUILDING THE XOMA ROYALTY BUSINESS Investors Investors Partners 100+ x2 > $130M assets Scalable since 2017 + New Deals 1 undisclosed PHASE 3 / COMMERCIAL BUSINESS MODEL MILESTONES PIPELINE REGISTRATION ROYALTIES 4
Slide 5: XOMA Royalty's Business Model: The Compounding Effect
XOMA ROYALTY’S BUSINESS MODEL: Path to Sustained THE COMPOUNDING Profitability EFFECT GROWING # of ROYALTIES ↑ CASH RECEIPTS 6 LOW EXPENSES 5 LOW SHARE COUNT INFLECTION 4 HIGH EPS POINT 3 2 LOW EXPENSES 1 SIGNIFICANT SHARE PRICE APPRECIATION 2023 future 5
Slide 6: OJEMDA approved by FDA for pediatric low-grade glioma
Approved by FDA for relapsed or refractory BRAF-altered pediatric low-grade glioma (pLGG), the most common form of childhood brain tumor • Acquired economics for $13.5M Upfront in 2021 • Received $25.1M in milestones to date (additional $28M in potential milestones) • Entitled to mid-single digit ro
Slide 7: MIPLYFFA approved by FDA for NPC
Approved by FDA for use in combination with miglustat for the treatment of neurological manifestations of NPC in adult and pediatric patients 2 years of age and older • Acquired economics from LadRx for $5M upfront in 2023 • Potential to receive $52.5M in milestones • Entitled to mid-single digit ro
Slide 8: XOMA Royalty Is Differentiated
XOMA ROYALTY IS DIFFERENTIATED Capital per transaction $200M+ Royalty Pharma $200M – $100M DRI Healthcare Trust $100M – FOCUSED ON Ligand HCRx $25M EARLY- to MID-STAGE CLINICAL ASSETS <$25M PRECLINICAL PHASE 1 PHASE 2 PHASE 3 APPROVAL COMMERCIAL 8
Slide 9: Business Model Differentiation Should Enhance Value Creation
XOMA ROYALTY’S BUSINESS MODEL DIFFERENTIATION SHOULD ENHANCE VALUE CREATION Visibility into future DCF VALUE + PIPELINE royalty portfolio DCF differentiates VALUE VALUE XOMA ROYALTY from majority of royalty competitors TIME 9
Slide 10: XOMA Royalty's Time Is Now…
XOMA ROYALTY’S TIME IS NOW… LIFE SCIENCES MARKETS ARE CHALLENGED… …CREATING OPPORTUNITY EQUITY DEBT ROYALTY ↓ Volume ↑ Cost MONETIZATION ↓ Equity Dilution Unlock Latent Value PARTNER M&A ↓ Volume ↓ Volume ↑ Capital Efficiency 10
Slide 11: Basics of a XOMA Royalty Monetization Transaction
BASICS OF A XOMA ROYALTY MONETIZATION TRANSACTION 2 Royalty Monetization License Program Licensed PHARMA 1 Agreement BIOTECH Royalties & Milestones PARTNER 11
Slide 12: XOMA Royalty's Ideal Royalty Asset
XOMA ROYALTY’S IDEAL ROYALTY ASSET HIGH ROYALTY POTENTIAL High unmet need or clear clinical benefit over alternatives LONG DURATION OF MARKET EXCLUSIVITY Patent expiration or regulatory exclusivity ESTABLISHED DEVELOPER / MARKETER Assets partnered with reputable pharma / biopharma MID- TO EARLY-STAG
Slide 13: Key Assets in XOMA Royalty Portfolio
KEY ASSETS IN XOMA ROYALTY PORTFOLIO CONSENSUS ASSET COMMERCIAL PARTNER INDICATION STAGE ROYALTY % PEAK SALES 1 VABYSMO® Roche Wet AMD / DME Commercial $7.3B 0.50% OJEMDA Day One pLGG Commercial $1.6B Mid-single digit MIPLYFFA Zevra Niemann-Pick Type C Commercial $175M Mid-single digit XACIATO Organ
Slide 14: XOMA Royalty Deal & Portfolio Construction
XOMA ROYALTY DEAL & PORTFOLIO CONSTRUCTION WELL-STRUCTURED RISK-MITIGATED H PROBABILITY OF SUCCESS Recoup acquisition cost from milestone payments L H BREAKEVEN L REWARD DIVERSIFIED MILESTONES + ROYALTIES Indication Mechanism PAYMENT Modality Stage 14
Slide 15: The Power of the XOMA Royalty Model
THE POWER OF THE XOMA ROYALTY MODEL Dec 2023 A Single Transaction1 Can Deliver Significant Value for Shareholders ROYALTY-BACKED LOAN $140M 3 XOMA Raises up to $140 Million in Non-Dilutive, Non-Recourse Financing from Funds Managed by Blue Owl Capital Low Cost of Capital Backed by VABYSMO® Royalties
Slide 16: Vosaroxin Transaction
+ VOSAROXIN TRANSACTION: $13.5M upfront to Viracta Therapeutics OJEMDA vosaroxin Pediatric low-grade Myelodysplastic Indication glioma syndromes + AML $54M Milestone Potential Milestone Payments $57M Received: $25.1M Royalty Rate Mid-single digit High single digit FDA APPROVED1 & Clinical Stage COMM
Slide 17: Aldoxorubicin Transaction
+ ALDOXORUBICIN TRANSACTION: $6M to LadRx1 MIPLYFFA is a first-in-class therapy for NPC MIPLYFFA aldoxorubicin Indication Niemann-Pick Type C Pancreatic Cancer $52.6M Mid-single digit percentage on Milestone Potential out licensing economics Royalty Rate Mid-single digit Low single digit FDA APPROVE
Slide 18: Daré Transaction
DARÉ TRANSACTION: $22M upfront to Daré for economic interest in 3 first-in-category assets 1 XACIATO Ovaprene® Sildenafil (clindamycin phosphate) (hormone-free monthly vaginal gel 2% intravaginal contraceptive) Cream, 3.6% Female sexual Indication Bacterial vaginosis Contraception arousal disorder M
Slide 19: Twist Transaction
TWIST TRANSACTION: $15M for economic interest in >60 assets Twist Biopharma Solutions Milestone Potential 50% of milestone receipts Royalty Rate 50% of low single digit Clinical Stage Early stage Partner 30 partners 19
Slide 20: Pulmokine Acquisition
PULMOKINE ACQUISTION: $20M upfront for economic interest in seralutinib, a Phase 3 asset Seralutinib Pulmonary arterial hypertension (PAH) & Indication pulmonary hypertension associated with interstitial lung disease (PH-ILD) Milestone Potential Net up to $25M Royalty Rate Net low to mid-single digi
Slide 21: Castle Creek Biosciences Transaction
CASTLE CREEK BIOSCIENCE TRANSACTION: $5M of a $75M syndicated royalty financing agreement. D-Fi (FCX-007) Indication Dystrophic epidermolysis bullosa (DEB) Royalty Rate < 1 percent Product Stage Phase 3 Commercial Partner 21
Slide 22: IXINITY Transaction
IXINITY® TRANSACTION: $9.6M upfront to Aptevo Royalties through 1Q2035 IXINITY® Indication Hemophilia B Milestone Potential undisclosed Royalty Rate 5% FDA approved & commercialized; Clinical Stage sBLA approved in March 2024 for pediatric use <12 yo Partner 22
Slide 23: Key Portfolio Events Anticipated in 2025
KEY PORTFOLIO EVENTS ANTICIPATED in 2025 Commercial Sales Ramps Phase 3 Data Announcements RZ358 seralutinib Congenital Pulmonary 2024 Product Launches Hyperinsulinism (cHI) Arterial Hypertension ADDITIONAL BUSINESS Phase 3 Clinical Starts DEVELOPMENT sildenafil RZ358 mezagitamab cream, 3.6% Hypogly
Slide 24: Blue Owl Financing – Up to $140M
BLUE OWL FINANCING – UP TO $140M TERMS STOCKHOLDER WELL-STRUCTURED BENEFIT $130M at close Acquire assets for Non-dilutive, non- cash flow growth recourse capital 9.875% interest Stock repurchases Scaled $14M acquisition Secured only by VABYSMO royalties XOMA retains Strategic partnership long-term v
Slide 25: Kinnate Transaction: ~$9.5M Cash
KINNATE TRANSACTION: ~$9.5M cash added to XOMA’s balance sheet for additional capital deployment & potential royalties on pipeline Kinnate Stockholders Receive Cash Amount $2.5879 (per share) from out license or 85% sale of Kinnate programs completed of net proceeds within 1 year of closing Continge
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS ($M) $180 >$120M >$1B Y/E Cash in milestones in potential $160 G&A Expenses since 2017 milestones $140 $120 $100 6 assets $80 generating royalty receipts $60 $40 $46.3M in cash receipts $20 during 2024 $0 Stable Expense Base 2016 2017 2018 2019 2020 2021 2022 2023 2024 26
Slide 27: XOMA Royalty's Stock Repurchase Program
XOMA ROYALTY’S STOCK REPURCHASE PROGRAM Up to $50 Million through January 2, 2027 DRIVING SHAREHOLDER VALUE 27
Slide 28: Three Publicly Traded Offerings
THREE PUBLICLY TRADED OFFERINGS TO MEET THE NEEDS OF SPECIFIC INVESTORS XOMA ROYALTY Common Stock XOMAP XOMAO Series A Cumulative Perpetual Preferred Stock Series B Cumulative Perpetual Preferred Stock $25.00 par value $25.00 par value 8.625% dividend paid quarterly 8.375% dividend paid quarterly 28
Slide 29: Who We Are
WHO WE ARE ▪ Leadership Board of Directors – Owen Hughes, Chief Executive Officer ▪ Jack Wyszomierski, Chairman – Brad Sitko, Chief Investment Officer CFO of VWR International (retired) – Tom Burns, Chief Financial Officer ▪ Heather L. Franklin Executive Chair of Blaze Bioscience ▪ Business Developm
Slide 30: XOMA Royalty's Time Is Now
XOMA ROYALTY’S TIME IS NOW INFLECTION EFFICIENT POINT BUSINESS MODEL FORTHCOMING COMPETITIVE ROYALTIES TO DIFFERENTIATION DRIVE SHAREHOLDER RETURNS Enabling Today’s Science to Be Tomorrow’s Cures 30
Slide 31: Corporate Presentation
CORPORATE PRESENTATION THE ROYALTY NASDAQ COMMON: XOMA AGGREGATOR NASDAQ PERPETUAL PREFERRED SHARES: XOMAP, XOMAO FOR BIOTECH COMPANIES MAY 2025