XOMA Declares Quarterly Preferred Stock Dividends
- None.
- None.
Insights
The declaration of cash dividends by XOMA Corporation for its Series A and Series B Cumulative Preferred Stock indicates the company's financial health and ability to return value to its shareholders. The specific dividend rates of 8.625% and 8.375% for Series A and Series B, respectively, are significant as they suggest a substantial yield compared to the average dividend yield of the broader market.
Investors in preferred stocks typically seek stable income and the announcement of these dividends may reinforce investor confidence in XOMA's financial stability and earnings predictability. However, it is also important to consider the sustainability of these dividend payments in the context of the company's overall earnings, cash flow and financial strategy.
Within the biotech sector, where XOMA operates, cash dividends are not as common as in other industries, given the high capital reinvestment needs for research and development. XOMA's ability to pay dividends may signal a mature phase in its business cycle or a strategic approach to attract a different kind of investor. It is crucial to analyze how this dividend policy aligns with the company's long-term growth plans and operational needs.
Investors should examine the company's R&D pipeline, potential product launches and market competition to assess how the dividend payments might affect future growth opportunities and capital allocation.
Dividend payments can be influenced by broader economic conditions. In an environment with rising interest rates, as often seen in response to inflation, high-dividend stocks like those of XOMA might become more attractive relative to bonds. This could potentially increase demand for XOMA's preferred shares.
However, macroeconomic shifts could also impact the company's operational costs and the affordability of its dividend policy in the long run. Analyzing economic trends and their potential impact on XOMA's business model is essential for a comprehensive understanding of the dividend announcement's implications.
EMERYVILLE, Calif., Dec. 20, 2023 (GLOBE NEWSWIRE) -- XOMA Corporation (Nasdaq: XOMA) (“XOMA” or the “Company”) today announced its Board of Directors has authorized the following cash dividends to holders of XOMA’s Series A and Series B Cumulative Preferred Stock:
Holders of the
Holders of depositary shares, each representing 1/1000 of a share of XOMA’s
The preferred dividends will be paid on or about January 16, 2024, to respective holders of record at the close of business on January 3, 2024.
About XOMA Corporation
XOMA is a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. XOMA acquires the potential future economics associated with pre-commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. When XOMA acquires the future economics, the seller receives non-dilutive, non-recourse funding they can use to advance their internal drug candidate(s) or for general corporate purposes. The Company has an extensive and growing portfolio with more than 70 assets (asset defined as the right to receive potential future economics associated with the advancement of an underlying therapeutic candidate). For more information about the Company and its portfolio, please visit www.xoma.com.
Forward-Looking Statements/Explanatory Notes
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify such forward-looking statements by terminology such as “will” or “shall”, the negative of these terms or similar expressions. These forward-looking statements are not a guarantee of XOMA’s performance, and you should not place undue reliance on such statements. These statements are based on assumptions that may not prove accurate, and actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry, including those related to the fact that our product candidates subject to out-license agreements are still being developed, and our licensees may require substantial funds to continue development which may not be available; we do not know whether there will be, or will continue to be, a viable market for the products in which we have an ownership or royalty interest; if the therapeutic product candidates to which we have a royalty interest do not receive regulatory approval, our third-party licensees will not be able to market them, and the impact to the global economy as a result of the COVID-19 pandemic. Other potential risks to XOMA meeting these expectations are described in more detail in XOMA's most recent filing on Form 10-Q and in other SEC filings. Consider such risks carefully when considering XOMA's prospects. Any forward-looking statement in this press release represents XOMA's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA disclaims any obligation to update any forward-looking statement, except as required by applicable law.
EXPLANATORY NOTE: Any references to “portfolio” in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development. Any references to “assets” in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.
As of the date of this press release, all assets in XOMA’s milestone and royalty portfolio, except Vabysmo® (faricimab), are investigational compounds. Efficacy and safety have not been established with any of these investigational assets, and there is no guarantee that any will become commercially available.
| Investor contact: | Media contact: |
| Juliane Snowden | Kathy Vincent |
| XOMA | KV Consulting & Management |
| +1-646-438-9754 | +1-310-403-8951 |
| juliane.snowden@xoma.com | kathy@kathyvincent.com |
FAQ
What dividends did XOMA Corporation announce for its Series A Cumulative Preferred Stock?
What dividends did XOMA Corporation announce for its Series B Cumulative Preferred Stock?
When will the preferred dividends be paid?
What is the ticker symbol for XOMA Corporation?
