XOMA

2025 was a foundational year for Zoma Royalty as it continued to execute on its strategy of building a diversified portfolio of biotechnology royalty and milestone assets. It approached the inflection point where royalty receipts alone should cover core operating costs. It added 22 assets to the portfolio in 2025 and acquired two platform technologies. Total portfolio receipts surpassed $50 million, including royalty receipts of $34 million which grew 68% from 2024. It maintained a lean operating structure to achieve positive cash flow from operations and returned $16 million via share buybacks. Going forward, it anticipated maintaining disciplined capital allocation, investing in new portfolio assets and continuing to reduce equity base. There were seven commercially available programs. Some commercial stage programs had promising launches with potential geographic expansion. There were clinical setbacks but companies remained committed to exploring options. 2026 had key catalysts such as top-line results from Resolute's program, Velixibat VISTA study results, REC 4881 engaging with FDA, and additional data from AZ's TIGIT program. It executed a strategic revenue share transaction with Takeda, added potential royalty and milestone payments across nine programs. It efficiently expanded its portfolio through acquisition of seven negative enterprise value companies, obtained non-dilutive capital and expanded its asset portfolio. Since early 2023, it had transformed and executed on its strategy, building an expansive royalty portfolio, increasing number of assets in active development, matured portfolio with increased commercially available and late stage assets, and demonstrated positive operating cash flows without diluting shareholders.

Zoma Royalty anticipated maintaining a disciplined approach to capital deployment, investing in new portfolio assets to increase portfolio breadth while continuing to reduce equity base to increase future cash flow per share. It expected key catalysts in 2026 to translate into growth. It was approaching the inflection point where royalties from currently approved products alone could be sufficient to support breakeven operating cash flows in 2027 and beyond, which should provide strong positioning to access lower cost capital and deliver growth for shareholders.

2025 was a strong year financially for Zoma Royalty. Total top line income and revenue was $52.1 million in full year 2025 compared to $28.5 million in 2024. On a cash basis, total receipts grew 9% to $50.5 million, including approximately $34 million from royalties which increased 68% compared to 2024. Royalty receipts came from four programs in 2025, two more than 2024. G&A expenses for full year were $36 million. GAAP net income was $31.7 million in 2025 compared to a GAAP net loss of $13.8 million in 2024. Zoma Royalty added 22 assets to its portfolio in 2025, maintained lean operating structure to achieve positive cash flow from operations and returned $16 million of capital through share buybacks, retiring over 5% of common stock outstanding. There are seven commercially available programs providing diversified recurring receipts.

Clinical setbacks could impact results as seen with Resolute and Gossamer Bio programs. Litigation risk exists with Zoma Royalty's litigation against Janssen Biotech regarding unauthorized use of intellectual property, with uncertain outcome and potential legal fees. There are other risks such as those related to federal securities laws factors that could cause actual results to differ materially from forward-looking statements as per SEC filings.

The question and answer section includes exchanges such as David Rissinger asking about royalty receipts growth prospects for approved products and Tramfaya economic opportunity, and Jeff, Owen answering; Phil Nadeau asking about capital deployment prioritization and Resolute program opportunity size, and Owen, Jeff answering; Joe Pat Guinness asking about cadence of new deal activity and deal mix, and Owen answering; Elemera Pairos asking about taquita deal amendment reason and capital structure outlook, and related persons answering