XOMAO - XOMA Corporation: A Hold Rating With Steady Income From Preferred Shares
2024-06-29 02:31:45 ET
Summary
- XOMA Corporation operates as a biotechnology royalty aggregator, acquiring economic rights to milestones and royalties from approved or clinical-stage drugs.
- XOMA’s diverse IP portfolio spans various therapeutic areas, including oncology, immunology, rare diseases, and acute pain, mitigating investment risks.
- The recent acquisition of Kinnate Biopharma extends XOMA's portfolio into oncology despite Kinnate selling its crown jewel, exarafenib, before the acquisition.
- I rate XOMA’s equity a "hold" due to its high valuation and ongoing cash burn, which limit its explosive upside potential compared to other biotechs.
- XOMA’s preferred shares (XOMAP) offer an 8.5% yield, making them a better option for income-focused investors seeking steady dividends.
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XOMA Corporation: A Hold Rating With Steady Income From Preferred Shares