XOMA Royalty to Acquire LAVA Therapeutics for $1.16-$1.24 per Share, Plus Contingent Value Right.

XOMA Royalty has agreed to acquire cancer drug developer LAVA Therapeutics for $1.16-$1.24 per share in cash, plus a contingent value right. The acquisition will expand XOMA's portfolio of cancer treatments and strengthen its position in the biotech industry. The deal is subject to regulatory approval and is expected to close in Q3.

XOMA Royalty Corporation (NASDAQ: XOMA) has agreed to acquire cancer drug developer LAVA Therapeutics (NASDAQ: LVTX) for $1.16 to $1.24 per share in cash, plus a contingent value right (CVR). The acquisition will expand XOMA's portfolio of cancer treatments and strengthen its position in the biotech industry. The deal is subject to regulatory approval and is expected to close in Q3.

Under the terms of the agreement, LAVA investors are expected to receive $1.16 in base price per share, plus an additional $0.08 per share and a non-transferable CVR. The CVR entitles investors to receive additional proceeds subject to certain conditions. Specifically, investors will receive 75% of net proceeds related to the company’s two partnered assets and 75% of net proceeds if LAVA’s unpartnered programs are out-licensed or sold.

As part of the acquisition, XOMA has agreed to wind down LAVA's lead program, LAVA-1266. Consequently, a Phase 1 clinical trial for LAVA-1266 in acute myeloid leukemia and myelodysplastic syndrome will be discontinued.

XOMA Royalty has a history of strategic acquisitions, including its recent purchases of Turnstone Biologics, HilleVax, and mezagitamab royalty rights from BioInvent International. These deals have allowed XOMA to diversify its portfolio and expand its royalty aggregation model.

The acquisition of LAVA Therapeutics aligns with XOMA's strategy of non-dilutive funding for therapeutic development. By acquiring LAVA, XOMA aims to leverage its expertise in royalty aggregation to drive growth and innovation in the biotech sector.

The deal is expected to close in Q3, subject to regulatory approval. Investors should closely monitor the progress of the acquisition and the impact it may have on XOMA's financial performance.

References:
[1] https://seekingalpha.com/news/4477180-lava-therapeutics-stock-gains-ma-deal-with-xoma
[2] https://www.stocktitan.net/news/XOMAP/