Jaguar Health Earnings Preview: What to Expect

TD Cowen analyst Phil Nadeau maintains a neutral stance on Xoma, giving a Hold rating due to the company's stable but uncertain growth trajectory. Xoma's recent acquisitions and cash balance suggest a strategy focused on expanding its royalty portfolio, but the impact on profitability and growth remains uncertain. Nadeau's 3-star rating on TipRanks is based on an average return of 2.7% and a 40.87% success rate.

XOMA Royalty Corporation (NASDAQ: XOMA) recently reported its Q2 2025 financial results, highlighting significant business developments and pipeline advancements. The company reported a net income of $9.2 million and total income/revenue of $13.1 million for the quarter, up from $7.4 million and $11.1 million, respectively, in Q2 2024 [1]. Key highlights include receiving $29.6 million in royalties and milestones in H1 2025, with $11.7 million in Q2, and a strong cash position of $78.5 million as of June 30, 2025 [1].

Notable achievements include the acquisition of multiple companies—Turnstone Biologics, LAVA Therapeutics, and HilleVax—and the $20 million purchase of mezagitamab royalty rights from BioInvent. These acquisitions expand XOMA's portfolio and diversify its royalty streams [1]. Additionally, the company reported multiple pipeline advancements, such as Rezolute's completion of Phase 3 enrollment for ersodetug and EMA's acceptance of Day One's tovorafenib MAA [1].

The company's strategic capital deployment has enabled it to repurchase over 107,500 shares in 2025 while maintaining a cash position of $78.5 million [1]. XOMA's partner pipeline shows significant progress, with several late-stage assets approaching potential commercialization. Key developments include Rezolute completing enrollment in its Phase 3 sunRIZE study for ersodetug, Takeda dosing the first patient in a Phase 3 trial for mezagitamab, and Zevra submitting an MAA to the EMA for arimoclomol [1].

While G&A expenses remain substantial at $15.9 million for the first half of 2025, they've decreased from $19.5 million in the same period of 2024. The company reported net income of $9.2 million for Q2 and $11.6 million for the first half of 2025 [1].

TD Cowen analyst Phil Nadeau maintains a neutral stance on Xoma, giving a Hold rating due to the company's stable but uncertain growth trajectory. Nadeau's 3-star rating on TipRanks is based on an average return of 2.7% and a 40.87% success rate [2].

References:
[1] https://www.stocktitan.net/news/XOMA/xoma-royalty-reports-second-quarter-and-year-to-date-2025-financial-vomm2z8bess1.html
[2] https://www.tdameritrade.com/research/analysts/td-cowen-news