DEAR XOMA STOCKHOLDERS,
We made good progress over the course of 2023 towards advancing the company's differentiated royalty business model.
As is the case with any emerging biotech portfolio, there were both positive and negative developments, although many of our key near-term drivers of value remain intact. Most importantly, in late December, we fundamentally changed the composition of our balance sheet, adding up to $140 million in non-dilutive capital by partially monetizing our VABYSMO® (faricimab) royalties, economics that we purchased in 2021 for $14 million. Interestingly, XOMA now has more cash on its balance sheet than at any point in its 43-year history.