Xoma's Acquisitions and Financial Success Justify Buy Rating

Xoma's strategic acquisitions and financial performance justify a Buy rating, according to H.C. Wainwright analyst Joseph Pantginis. The company's expansion through acquisitions has bolstered its royalty portfolio and provided non-dilutive capital, while its recent financial results have exceeded expectations, driven by long-term royalty agreements from partnered assets. Leerink Partners also maintains a Buy rating with a $55.00 price target.

XOMA Royalty Corporation (XOMA), a biotechnology royalty aggregator, has made a strategic move by acquiring Mural Oncology (MURA) for $35.3 million. The deal, announced on August 20, 2025, involves XOMA paying $2.035 per share for 17.324771 million shares of MURA, with an additional earnout of $3.55 million contingent on certain performance metrics [2].

The acquisition is subject to regulatory approval, shareholder approval, antitrust regulations, and court approval. XOMA's move follows a strategic review process by Mural's board of directors, which deemed the acquisition in the best interest of shareholders [1]. The transaction marks XOMA's fifth acquisition in 2025, joining Turnstone, ESSA, LAVA, and HilleVax in its portfolio expansion.

Analysts have taken note of XOMA's strategic acquisitions. Joseph Pantginis of H.C. Wainwright rates XOMA as a "Buy" and attributes the company's financial performance to its expansion through acquisitions, which have bolstered its royalty portfolio and provided non-dilutive capital. Leerink Partners also maintains a "Buy" rating with a $55.00 price target [3].

Mural's shares closed up 15.8% at $2.08 following the announcement, indicating market approval of the acquisition [1]. This acquisition aligns with XOMA's strategy to grow its royalty portfolio and capitalize on long-term royalty agreements from partnered assets.

References:
[1] https://www.thepharmaletter.com/biotechnology/mural-oncology-accepts-xoma-takeover-bid
[2] https://www.marketscreener.com/news/xoma-royalty-corporation-entered-into-a-definitive-agreement-to-acquire-mural-oncology-plc-for-35-3-ce7c51d2d18af124
[3] H.C. Wainwright and Leerink Partners' analyst ratings, as cited in the writing topic.