XOMA (XOMA) Stock Forecast & Price Target

XOMA Royalty Corp is positioned for long-term profitability, driven by its diverse partnerships and expected growing royalties from multiple therapeutic candidates, including Vabysmo, Ojemda, and Miplyffa. The company is also anticipating significant contributions from high-single to mid-teen royalties associated with the potential regulatory approval of Ersodetug (RZ358), which demonstrated promising Phase 3 results. Furthermore, a steady influx of milestone revenue is expected to enhance cash flow, despite the variable timing of these payments, further solidifying XOMA's growth trajectory.

XOMA Royalty Corp faces significant risks tied to its reliance on the success of pre-commercial therapeutic candidates, as failed or inconclusive clinical trials can substantially hinder revenue generation. The company may also struggle to secure adequate funding, which is essential for advancing drug development and maintaining operational stability. These fundamental challenges pose a considerable threat to the company’s financial health and overall outlook.