XOMA Royalty and Takeda Execute Strategic Royalty Sharing Transaction and Amend Existing Agreement for Mezagitamab

Rhea-AI Summary

XOMA Royalty (NASDAQ: XOMA) and Takeda amended their 2006 collaboration via a strategic royalty share transaction announced Dec 30, 2025. Takeda regains a majority of XOMA Royalty’s mezagitamab economics while XOMA Royalty will retain a low single-digit royalty on mezagitamab and up to $13.0 million in milestones (previously mid-single-digit royalty and $16.25 million in potential milestones).

In exchange, XOMA Royalty will receive payments (low to mid-single-digit royalties and milestones) tied to a basket of nine development-stage assets from Takeda’s externalized portfolio, including programs from Neurocrine, Mirum, Oak Hill Bio, Recursion, and others.

Positive

• Portfolio expanded to royalties on 9 development-stage assets
• Retains a low single-digit royalty on mezagitamab
• Keeps up to $13.0 million in mezagitamab milestones

Negative

• Mezagitamab milestones reduced from $16.25M to $13.0M
• Mezagitamab royalty cut from mid- to low single-digit

News Market Reaction

%

1 alert

% News Effect

On the day this news was published, XOMAP declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Mezagitamab milestones (prior): $16.25 million Mezagitamab milestones (new): up to $13.0 million Development-stage assets: 9 assets +1 more

4 metrics

Mezagitamab milestones (prior) $16.25 million Potential milestones associated with mezagitamab before amendment

Mezagitamab milestones (new) up to $13.0 million Potential milestones retained on mezagitamab after amendment

Development-stage assets 9 assets Takeda externalized assets portfolio tied to new royalty share

Patient population approximately 50,000 people Familial adenomatous polyposis across U.S. and key EU markets

Market Reality Check

Price: $26.33 Vol: Volume 253,114 is 2.29x t...

high vol

$26.33 Last Close

Volume Volume 253,114 is 2.29x the 20-day average of 110,600, indicating elevated interest ahead of this royalty restructuring. high

Technical Shares at $25.25 are trading below the 200-day MA of $28.64 and 36.75% under the 52-week high.

Peers on Argus

Peers show mixed, modest moves (e.g., ATXS +0.62%, ERAS -0.57%, ZVRA +0.34%), su...

Peers show mixed, modest moves (e.g., ATXS +0.62%, ERAS -0.57%, ZVRA +0.34%), suggesting today’s reaction is more XOMA-specific than sector-driven.

Historical Context

5 past events · Latest: Dec 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 22	Preferred dividends	Positive	+0.8%	Declared cash dividends on Series A and Series B preferred shares.
Dec 05	M&A closing	Positive	-3.3%	Closed acquisition of Mural Oncology with $2.035 per share cash consideration.
Nov 21	M&A closing	Positive	-0.3%	Completed LAVA Therapeutics acquisition with cash plus CVR structure for holders.
Nov 12	Earnings update	Positive	-2.5%	Reported Q3 2025 profitability and strong year‑to‑date income and cash levels.
Oct 17	Deal amendment	Neutral	-4.9%	Amended LAVA purchase terms with cash plus CVR and adjusted net‑cash condition.

Pattern Detected

Recent corporate and financial updates often saw muted-to-negative price reactions, even on seemingly constructive news like acquisitions and profitability.

Recent Company History

Over the past few months, XOMA Royalty has focused on portfolio expansion and capital tools. It completed acquisitions of LAVA Therapeutics on Nov 21, 2025 and Mural Oncology on Dec 5, 2025, and reported a profitable Q3 2025 with net income of $14.1M and year‑to‑date net income of $25.6M. A quarterly preferred dividend was declared on Dec 22, 2025. Against this backdrop of deal activity and income growth, the new Takeda royalty‑sharing amendment continues the strategy of diversifying royalty streams across partnered programs.

Market Pulse Summary

This announcement rebalanced XOMA Royalty’s exposure by reducing its mezagitamab economics and addin...

Analysis

This announcement rebalanced XOMA Royalty’s exposure by reducing its mezagitamab economics and adding royalties and milestones tied to 9 Takeda externalized assets. The company still retains up to $13.0 million in mezagitamab milestones, but future value now depends more on multiple early- and late-stage partnered programs. In context of recent acquisitions and Q3 profitability, investors may watch for clinical and partnering updates on these underlying assets and how they translate into cash flows.

Key Terms

royalty interest, milestones, investigational, positive allosteric modulator, +4 more

8 terms

royalty interest financial

"Takeda regains a majority of XOMA Royalty’s royalty interest in mezagitamab"

A royalty interest is a contractual right to receive a portion of revenue or production from an asset—such as a mine, oil well, patent, or drug—without owning or operating the underlying business. Investors value royalties because they provide a form of passive, often predictable cash flow that depends on how much the asset produces and the price it commands; think of it as collecting rent on someone else’s income-producing property, with returns tied to output and market prices.

milestones financial

"payments based on a share of milestones and royalties associated with nine development-stage assets"

Milestones are specific, measurable progress points a company aims to reach during a project—like completing a clinical trial step, securing a regulatory approval, or hitting a sales target. They matter to investors because each checkpoint reduces uncertainty about the business plan, can trigger payments or changes in valuation, and often signals whether future revenue or growth is likely, similar to passing checkpoints on a racecourse that show how close you are to the finish line.

investigational medical

"a potential first-in-class, investigational alpha-amino-3-hydroxy-5-methyl-4-isoxazole"

A product labeled investigational is one that is still being tested and has not received official regulatory approval for general use; think of it as a prototype undergoing controlled trials to prove it works and is safe. For investors, investigational status signals higher uncertainty and potential reward because success can unlock sales and value, while failure or delays can reduce expected returns and increase development costs.

positive allosteric modulator medical

"a potential first-in-class, investigational ... (AMPA) positive allosteric modulator (PAM)"

A positive allosteric modulator is a drug-like molecule that attaches to a different spot on a biological target than the body’s own messenger, and increases the target’s response when that natural messenger is present—like turning up a volume knob rather than replacing the song. For investors, these agents can boost a therapy’s effectiveness or safety without directly activating the target, offering potential competitive advantage, clearer combination strategies, and distinct patent or regulatory value.

ileal bile acid transporter (IBAT) medical

"designed to selectively inhibit ileal bile acid transporter (IBAT), for primary sclerosing"

The ileal bile acid transporter (IBAT) is a protein in the lower small intestine that reclaims bile acids from digested food and sends them back to the body — like a recycling conveyor belt for digestive chemicals. Drugs that block or modify IBAT can change cholesterol recycling, reduce bile-acid driven diarrhea and itching, or alter liver and metabolic signals, so success or failure of such drugs in trials and approval decisions can meaningfully affect a biotech or pharmaceutical company's prospects.

recombinant human IGF-1/IGFBP-3 medical

"developing OHB-607, a recombinant human IGF-1/IGFBP-3 for the prevention"

A lab-made combination of human insulin-like growth factor‑1 (IGF‑1) and its carrier protein IGFBP‑3, designed to deliver the growth factor in a stable, controlled form for therapeutic use—often to treat growth deficiencies and related medical conditions. Think of it as a hormone with an escort that prolongs and controls its activity; investors watch it because clinical trial results, regulatory approval, manufacturing scale, and pricing determine commercial potential and revenue risk for drug developers.

bronchopulmonary dysplasia medical

"IGF-1/IGFBP-3 for the prevention of bronchopulmonary dysplasia in premature infants."

A chronic lung condition that most commonly affects premature infants who have needed oxygen or mechanical breathing support; it leaves delicate air sacs inflamed and scarred so the lungs work less efficiently, like a garden hose with stiff, narrowed sections. Investors track it because the condition drives demand for neonatal therapies, respiratory devices and long-term care services, influences clinical trial and regulatory outcomes, and can affect healthcare costs and revenue for related companies.

familial adenomatous polyposis medical

"REC-4881, an investigational MEK1/2 inhibitor for familial adenomatous polyposis, a rare"

An inherited condition caused by a gene mutation that leads to the early development of hundreds to thousands of growths (polyps) in the colon and rectum, which, if untreated, almost always progress to colorectal cancer. Investors care because it creates a clear medical need for genetic testing, ongoing monitoring, preventive surgeries and targeted therapies; like a high-risk household where early alarms and durable fixes have outsized value in diagnostics and treatment markets.

AI-generated analysis. Not financial advice.

– Takeda regains a majority of XOMA Royalty’s royalty interest in mezagitamab (TAK-079) –
– XOMA Royalty will be entitled to payments based on a share of milestones and royalties associated with nine development-stage assets held within Takeda’s externalized assets portfolio –

EMERYVILLE, Calif., Dec. 30, 2025 (GLOBE NEWSWIRE) -- XOMA Royalty Corporation (NASDAQ: XOMA), the biotech royalty aggregator, announced today it has amended its collaboration, originally established in 2006, with Takeda through a strategic royalty share transaction. Takeda’s royalty and milestone payment obligations to XOMA Royalty related to mezagitamab will be reduced, and XOMA Royalty will receive payments based on low to mid-single-digit royalties and milestones across a basket of nine development-stage assets that are held within Takeda’s externalized assets portfolio.

“We continue to find ways to expand and diversify our royalty and milestone portfolio through creative transactions that are beneficial to both parties,” stated Brad Sitko, Chief Investment Officer of XOMA Royalty. “Takeda and XOMA Royalty have a long history of collaboration. By amending our collaboration, we are able to return a portion of our mezagitamab economics to Takeda, while also expanding and diversifying XOMA Royalty’s portfolio across several interesting early- and late-stage programs.”

Mezagitamab
Prior to amending the collaboration, XOMA Royalty held a mid-single digit royalty and $16.25 million in potential milestones associated with mezagitamab. Going forward, XOMA Royalty will retain a low single-digit royalty entitlement on mezagitamab and up to $13.0 million in milestones.

Development-Stage Assets from Takeda’s Externalized Assets Portfolio

Osavampator

• Neurocrine Biosciences is developing osavampator, a potential first-in-class, investigational alpha-amino-3-hydroxy-5-methyl-4-isoxazole propionic acid (AMPA) positive allosteric modulator (PAM) for patients who have inadequate response to treatment for major depressive disorder (MDD).
  

Volixibat

• Mirum Pharmaceuticals is developing volixibat, a minimally absorbed, orally administered investigational therapy designed to selectively inhibit ileal bile acid transporter (IBAT), for primary sclerosing cholangitis (PSC) and primary biliary cholangitis (PBC).
  

OHB-607 and five early-stage Oak Hill Bio assets

• Oak Hill Bio and their partner are developing OHB-607, a recombinant human IGF-1/IGFBP-3 for the prevention of bronchopulmonary dysplasia in premature infants.   Additional Oak Hill Bio assets that have the potential to generate royalties address other high unmet need or rare disease areas.
  

REC-4881

• Recursion Pharmaceuticals is developing REC-4881, an investigational MEK1/2 inhibitor for familial adenomatous polyposis, a rare tumor predisposition syndrome affecting approximately 50,000 people in the U.S., France, Germany, Italy, Spain, and the UK¹.  
  

About XOMA Royalty Corporation
XOMA Royalty is a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. XOMA Royalty acquires the potential future economics associated with pre-commercial and commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. When XOMA Royalty acquires the future economics, the sellers receive non-dilutive, non-recourse funding they can use to advance their internal drug candidate(s) or for general corporate purposes. XOMA Royalty has an extensive and growing portfolio of assets (asset defined as the right to receive potential future economics associated with the advancement of an underlying therapeutic candidate). For more information about XOMA Royalty and its portfolio, please visit www.xoma.com or follow XOMA Royalty Corporation on LinkedIn.

XOMA Royalty Forward-Looking Statements/Explanatory Notes
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the timing and amount of potential commercial and milestone payments to XOMA Royalty and other developments related to mezagitamab, osavampator, volixibat, OHB-607 and the Oak Hill Bio assets, and REC-4881. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will”, “would,” “could” or “should,” the negative of these terms or similar expressions. These forward-looking statements are not a guarantee of XOMA Royalty’s performance, and you should not place undue reliance on such statements. These statements are based on assumptions that may not prove accurate, and actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry, including those related to the fact that our product candidates subject to out-license agreements are still being developed, and our licensees may require substantial funds to continue development which may not be available; we do not know whether there will be, or will continue to be, a viable market for the products in which we have an ownership or royalty interest; and if the therapeutic product candidates to which we have a royalty interest do not receive regulatory approval, our third-party licensees will not be able to market them.  Other potential risks to XOMA Royalty meeting these expectations are described in more detail in XOMA Royalty's most recent filing on Form 10-Q and in other filings with the Securities and Exchange Commission.  Consider such risks carefully when considering XOMA Royalty's prospects.  Any forward-looking statement in this press release represents XOMA Royalty's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date.  XOMA Royalty disclaims any obligation to update any forward-looking statement, except as required by applicable law.

EXPLANATORY NOTE: Any references to “portfolio” in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development.  Any references to “assets” in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.

As of the date of this press release, the commercial assets in XOMA Royalty’s milestone and royalty portfolio are VABYSMO® (faricimab-svoa), OJEMDA™ (tovorafenib), MIPLYFFA™ (arimoclomol), XACIATO™ (clindamycin phosphate) vaginal gel 2%, IXINITY® [coagulation factor IX (recombinant)], and DSUVIA® (sufentanil sublingual tablet). All other assets in the milestone and royalty portfolio are investigational compounds. Efficacy and safety have not been established. There is no guarantee that any of the investigational compounds will become commercially available.

XOMA Royalty Investor Contact:	XOMA Royalty Media Contact:
Juliane Snowden	Kathy Vincent
XOMA Royalty Corporation	KV Consulting & Management
+1-646-438-9754	kathy@kathyvincent.com
juliane.snowden@xoma.com

---

¹ https://ir.recursion.com/news-releases/news-release-details/preliminary-phase-1b2-data-rec-4881-familial-adenomatous 

FAQ

What did XOMA Royalty and Takeda change about mezagitamab on Dec 30, 2025?

They amended their agreement so XOMA Royalty keeps a low single-digit royalty and up to $13.0M in milestones on mezagitamab.

How does the transaction affect XOMA Royalty’s portfolio (NASDAQ: XOMA)?

XOMA Royalty gains payments tied to a basket of nine development-stage assets from Takeda’s externalized portfolio.

How did mezagitamab economics change for XOMA Royalty numbers-wise?

Milestones decreased from $16.25M to $13.0M, and royalty entitlement moved from mid- to low-single-digit.

Which third-party programs are included in XOMA Royalty’s new basket from Takeda?

Included programs reference Neurocrine’s osavampator, Mirum’s volixibat, Oak Hill Bio assets including OHB-607, and Recursion’s REC-4881.

Will XOMA Royalty still receive payments if mezagitamab succeeds commercially?

Yes; XOMA Royalty will retain a low single-digit royalty and milestone entitlement on mezagitamab.