Xoma Royalty Corporation delivered a powerful financial performance in the third quarter of 2025, significantly exceeding analyst forecasts with a GAAP earnings per share of $0.70. The biotechnology royalty aggregator also reported substantial progress in its strategic acquisition initiatives.
Strategic Expansion and Financial Health
The company’s latest financials reveal a remarkable turnaround, posting a net income of $14.1 million compared to a loss during the same period last year. Quarterly cash receipts from licensing royalties and commercial payments reached $14.3 million, bringing the total cash collections to $43.9 million by the end of September.
Strategic investments in HilleVax and Turnstone generated significant returns, contributing $17.9 million and $1.8 million in gains respectively. Xoma has deployed $25.0 million year-to-date to expand its portfolio of license rights and milestone payment streams.
Mural Oncology Acquisition Advances
Regulatory milestones continue for Xoma’s subsidiary acquisition of Mural Oncology, with shareholder approval already secured and the Irish Takeover Panel confirming ongoing regulatory processes. The transaction values Mural Oncology’s entire equity at approximately $36.2 million. This follows recent acquisitions including LAVA Therapeutics, Turnstone Biologics, and HilleVax.
Should investors sell immediately? Or is it worth buying Xoma?
Mixed Analyst Sentiment Emerges
Market researchers responded to the strong results with several adjustments:
- Leerink Partners raised their price target from $55 to $58 while maintaining an “Outperform” rating
- Benchmark established a $50 price target with a “Buy” recommendation
- H.C. Wainwright reaffirmed their “Buy” rating with a $104 price objective
However, not all analysts share this optimism. Wall Street Zen downgraded the stock to “Hold,” while Zacks Research had previously issued a “Hold” recommendation in October. Additionally, Leerink reduced their earnings estimate for the fourth quarter.
The stock’s technical indicators show it trading below its 50-day average of $35.92 but remaining well above its 200-day average of $27.82. With an RSI reading of 63.37 approaching overbought territory, short-term consolidation appears likely as investors assess whether Xoma can maintain its current momentum through the coming months.
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