SCHEDULE 13G: Morgan Stanley Discloses 9.3% Passive Stake in XOMA Royalty Corp

Morgan Stanley and its subsidiary, Morgan Stanley Investment Management Inc., have disclosed a significant passive beneficial ownership stake of 9.3% in XOMA Royalty Corp.

Summary

• Morgan Stanley, along with its wholly-owned subsidiary Morgan Stanley Investment Management Inc., has filed a Schedule 13G indicating beneficial ownership of XOMA Royalty Corp. common stock.
• As of March 31, 2025, Morgan Stanley beneficially owned an aggregate of 1,111,148 shares, representing 9.3% of XOMA Royalty Corp.'s common stock.
• Morgan Stanley Investment Management Inc. beneficially owned 1,104,140 shares, representing 9.2% of the class, with shared voting and dispositive power over these shares.
• The filing indicates 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 sentiment is moderately positive. A significant stake by a reputable institution like Morgan Stanley can be seen as a vote of confidence in the issuer, XOMA Royalty Corp., indicating institutional interest and potential stability in the shareholder base.

Positives

• The disclosure of a significant beneficial ownership stake (9.3%) by a major institutional investor like Morgan Stanley can be viewed as a vote of confidence in XOMA Royalty Corp.'s business model and future prospects.
• The passive nature of the investment, as certified by Morgan Stanley, suggests a long-term holding strategy rather than an intent to influence management or control, which can provide stability.

Risks

• This Schedule 13G filing is a disclosure of beneficial ownership and does not contain information regarding the operational or financial risks specific to XOMA Royalty Corp.'s business.

Future Outlook

This document is a beneficial ownership report and does not contain any forward-looking statements or guidance regarding XOMA Royalty Corp.'s future financial performance or strategic outlook.

Management Comments

• Morgan Stanley 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 XOMA Royalty Corp.

Industry Context

This filing represents a routine disclosure by a major financial institution, Morgan Stanley, of its significant passive investment in XOMA Royalty Corp., a company focused on royalty streams. Such disclosures are common in the financial industry as institutional investors cross statutory ownership thresholds, reflecting their portfolio allocation decisions.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding a passive stake may positively influence market perception and potentially contribute to share price stability or appreciation due to increased institutional interest.

Key Dates

Keywords

XOMA Royalty Corp, Morgan Stanley, Schedule 13G, Beneficial Ownership, Institutional Investment, Common Stock, SEC Filing, Investment Management