Strategic Growth Potential: Xoma’s Diversified Royalty Portfolio and Promising Phase 3 Asset

Xoma (XOMA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on the stock and has a $104.00 price target.

Joseph Pantginis has given his Buy rating due to a combination of factors that highlight Xoma’s strategic positioning and potential for future growth. The company has a diversified portfolio of royalty-bearing assets, with over 120 partnerships in various stages of development, including six that are already generating royalty income. This broad base of assets provides Xoma with multiple opportunities to capitalize on its royalty strategy, particularly as several of these assets are in Phase 3 development, which could serve as significant growth catalysts.
One standout asset is ersodetug, a Phase 3 program for congenital hyperinsulinism being developed by Rezolute. This asset is particularly promising due to its advanced stage, strong clinical validation, and the high unmet need it addresses. With the FDA’s removal of a U.S. hold, the path to commercialization appears de-risked, and Xoma is positioned to earn substantial royalties from future sales. The anticipated launch in 2027, coupled with the projected peak revenue potential of approximately $300 million, underscores the asset’s potential to significantly contribute to Xoma’s royalty revenue growth, justifying the Buy rating.

According to TipRanks, Pantginis is an analyst with an average return of -14.2% and a 25.45% success rate. Pantginis covers the Healthcare sector, focusing on stocks such as Viking Therapeutics, Cytokinetics, and Esperion.

In another report released on March 18, Leerink Partners also reiterated a Buy rating on the stock with a $55.00 price target.