1. Description of Business

XOMA Corporation (referred to as “XOMA” or the “Company”), a Delaware corporation, has a long history of discovering and developing innovative therapeutics derived from its unique platform of antibody technologies. Over the Company’s 37 year history, it built an extensive portfolio of fully-funded programs by advancing product candidates into the earlier stages of development and then licensing them to licensees who assumed the responsibilities of later stage development, approval and commercialization. Fully-funded programs are those for which the Company’s partners pay all of the development and commercialization costs. As licensees advance these programs, the Company is eligible for potential milestone and royalty payments.    

In March 2017, the Company transformed its strategy to become a royalty aggregator with a focus on expanding its portfolio of fully-funded programs by out-licensing internally developed product candidates and acquiring potential milestone and royalty revenue streams on additional product candidates. The Company combined its royalty-aggregator model with a significantly reduced corporate cost structure to further build value for its shareholders. The Company expects that a significant portion of future revenue will be based on payments it may receive for milestones and royalties related to these programs.