XOMA: Expanding Royalty Portfolio and Capital-Efficient Partnerships Underpin Buy Rating

Analyst Joseph Pantginis of H.C. Wainwright maintained a Buy rating on Xoma, retaining the price target of $97.00.

Joseph Pantginis has given his Buy rating due to a combination of factors tied to XOMA’s expanding royalty-based pipeline and creative deal-making. He highlights that the newly expanded collaboration with Takeda adds nine additional programs to XOMA’s portfolio without any upfront cash payment, achieved merely by slightly trimming XOMA’s royalty and milestone share on mezagitamab. In his view, this trade-off significantly enhances the company’s long-term optionality because XOMA now participates economically in a broader range of partnered programs, several of which are in later stages of development. Pantginis also underscores that this transaction further deepens what was already a diverse set of partnered assets, positioning the company for a meaningful step-up in royalty and milestone income in the coming years.
Moreover, the analyst points out that these newly acquired interests include late-stage or registration-directed assets such as osavamator for major depressive disorder, volixibat for cholestatic liver diseases, and REC-4881 for familial adenomatous polyposis, as well as Oak Hill Bio’s OHB-607 in Phase 2b. By gaining exposure to multiple clinical programs at different stages—including some with upcoming data readouts—XOMA enhances its chances of benefiting from positive outcomes across partners’ pipelines rather than relying on a single product. Pantginis interprets this as a disciplined, capital-efficient strategy that can drive non-dilutive growth. Taken together, the broadened royalty base, the advanced status of several assets, and XOMA’s demonstrated ability to structure favorable, low-cost transactions support his positive stance and justify maintaining a Buy rating on the stock.