XOMA Royalty is a royalty aggregator focused on biotech and pharma. XOMA Royalty provides upfront capital to drug developers in exchange for the right to receive future milestone payments and royalties on their drug candidates or approved products. The drug developer gets non-dilutive, non-recourse funding, while XOMA Royalty receives a share of future economics if the drug succeeds commercially. XOMA Royalty bears none of the R&D or commercialization costs, making its cost structure lean — the company runs with just 14 full-time employees. XOMA Royalty holds economic interests in over 120 assets, including seven commercial-stage products and 14 late-stage candidates. The largest asset is VABYSMO, Roche's retinal disease drug, on which XOMA Royalty receives 0.5% of net sales for ten years per jurisdiction. XOMA Royalty acquires royalty interests through direct purchases from drug developers, by acquiring small biotech companies outright and retaining the royalty interests while divesting unpartnered assets, and through syndicated royalty financings. The portfolio approach is central to the model — many assets will fail, but a few successes can generate large, long-duration cash flows. XOMA Royalty focuses on earlier-stage clinical assets, where deal competition is lower and entry prices are cheaper, accepting higher binary risk and managing it through diversification across assets, therapeutic areas, and development stages.