XOMA operates primarily as a royalty aggregator, acquiring economic rights to future potential milestone payments and royalties associated with pre-commercial therapeutic candidates. This involves identifying and investing in promising early to mid-stage clinical assets (Phase 1 and 2) that have been licensed to pharmaceutical or biotechnology companies. The company's strategy focuses on assets with commercial sales potential, diversifying its portfolio across various therapeutic areas and development stages. XOMA's approach allows it to generate revenue through milestone payments and royalties as the partnered assets progress through clinical development and achieve commercial success. This business model provides a unique opportunity to participate in the upside of multiple therapeutic programs without the direct risks and costs associated with drug development.