Analyst Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Xoma and keeping the price target at $104.00.
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Joseph Pantginis has given his Buy rating due to a combination of factors including Xoma’s strategic acquisitions and expansion of its royalty opportunities. Xoma recently acquired assets from LAVA Therapeutics and HilleVax Inc., which are expected to enhance its portfolio and provide non-dilutive capital. These transactions include potential milestone payments and royalties from partnerships with major companies like Pfizer and Johnson & Johnson, which could significantly benefit Xoma’s financial position.
Additionally, Xoma has increased its royalty stake in Takeda’s mezagitamab by purchasing BioInvent’s share, potentially boosting its royalty income. This strategic move is expected to increase Xoma’s royalty rate to approximately 5.5%, along with additional milestone payments. Pantginis appreciates Xoma’s innovative approach in expanding its partnered assets and generating revenue, which supports his positive outlook and Buy rating for the stock.