XOMA Royalty to Acquire LAVA Therapeutics in Strategic Move to Enhance Portfolio

XOMA Royalty Corporation (NASDAQ: XOMA) and LAVA Therapeutics N.V. (NASDAQ: LVTX) have entered into a definitive share purchase agreement, setting the stage for XOMA Royalty to acquire LAVA Therapeutics. The deal, valued at between $1.16 and $1.24 per share in cash, plus a non-transferable contingent value right (CVR), underscores XOMA Royalty's strategic initiative to bolster its portfolio with promising biotechnology assets. The CVR entitles shareholders to 75% of the net proceeds from LAVA's partnered assets and unpartnered programs, highlighting the potential for significant future returns.

Owen Hughes, Chief Executive Officer of XOMA Royalty, emphasized the transaction's potential to benefit both companies' shareholders and patients, particularly through the development of gamma delta bispecific antibodies. Steve Hurly, CEO of LAVA, noted the thorough strategic review process that led to this agreement, aimed at maximizing shareholder value while ensuring the sustainable success of LAVA's business.

The transaction, expected to close in the fourth quarter of 2025, is subject to customary conditions, including shareholder approval and a minimum cash balance at closing. LAVA's Board of Directors has unanimously recommended the offer, citing its alignment with the company's best interests and those of its stakeholders. As part of the transition, LAVA will discontinue its Phase 1 clinical trial of LAVA-1266 for acute myeloid leukemia and myelodysplastic syndrome, marking a strategic pivot in its research focus.

This acquisition not only enhances XOMA Royalty's position as a leading biotechnology royalty aggregator but also reflects the growing importance of strategic partnerships in advancing innovative therapies. For more information on XOMA Royalty, visit https://www.xoma.com, and for details on LAVA Therapeutics, visit https://www.lavatherapeutics.com.