SCHEDULE 13G/A: Morgan Stanley Discloses 12.7% Passive Stake in XOMA Royalty Corp.

Morgan Stanley and its subsidiary, Morgan Stanley Investment Management Inc., have filed an amended Schedule 13G disclosing a combined 12.7% passive beneficial ownership stake in XOMA Royalty Corp.'s common stock.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Morgan Stanley Investment Management Inc., have filed an Amendment No. 1 to Schedule 13G regarding their beneficial ownership in XOMA Royalty Corp.
• As of May 30, 2025, Morgan Stanley beneficially owns an aggregate of 1,525,497 shares of XOMA Royalty Corp. common stock, representing 12.7% of the class.
• Morgan Stanley Investment Management Inc. beneficially owns 1,518,596 shares, also representing 12.7% of the class.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of XOMA Royalty Corp.

Sentiment

Score: 7

Explanation: The filing indicates a substantial passive investment by Morgan Stanley in XOMA Royalty Corp., which can be interpreted as a positive signal of institutional confidence in the company's long-term prospects, even though it's a routine disclosure of ownership.

Positives

• A major financial institution, Morgan Stanley, has taken a significant passive stake, which can be interpreted as a vote of confidence in XOMA Royalty Corp.'s long-term prospects.
• The investment is stated to be for ordinary course of business, indicating a passive holding rather than an activist intent, which can provide stability.

Future Outlook

The document is a disclosure of current ownership and does not provide forward-looking statements or guidance regarding XOMA Royalty Corp.'s future performance or Morgan Stanley's future investment plans beyond the passive nature of the holding.

Management Comments

• Authorized signatories for Morgan Stanley and Morgan Stanley Investment Management Inc. certified that the securities were acquired and are held in the ordinary course of business and not for the purpose of or with the effect of changing or influencing the control of the issuer.

Industry Context

This filing indicates a significant institutional investment in a company operating in the royalty space. Such investments by major financial institutions like Morgan Stanley are common for portfolio diversification and passive income generation, reflecting confidence in the underlying assets or business model.

Stakeholder Impact

• Shareholders: Increased institutional ownership may enhance liquidity and provide a positive signal, potentially attracting other investors.

Key Dates

Keywords

XOMA Royalty Corp, Morgan Stanley, Schedule 13G, beneficial ownership, common stock, institutional investment, passive stake, SEC filing