XOMA Royalty Corporation to Acquire LAVA Therapeutics N.V. in Strategic Move to Enhance Cancer Treatment Portfolio

XOMA Royalty Corporation (NASDAQ: XOMA) has entered into a definitive agreement to acquire LAVA Therapeutics N.V. (NASDAQ: LVTX), a move that significantly enhances XOMA's portfolio with LAVA's pioneering gamma delta bispecific antibodies. These antibodies are currently being explored for their potential in treating various forms of cancer, marking a significant step forward in oncology research. The acquisition is structured with a base price of $1.16 per share, potentially increasing to $1.24 per share based on certain conditions, and includes a non-transferable contingent value right (CVR) offering shareholders 75% of the net proceeds from LAVA's partnered assets and unpartnered programs.

The transaction, which has received unanimous approval from LAVA's Board of Directors, is seen as a strategic fit that aligns with LAVA's objectives to maximize shareholder value. It is contingent upon standard closing conditions, including the tender of at least 80% of LAVA's outstanding shares and shareholder approval, with an expected completion date in the fourth quarter of 2025. As part of the acquisition process, LAVA will halt its Phase 1 clinical trial of LAVA-1266 for acute myeloid leukemia and myelodysplastic syndrome, signaling a strategic pivot towards programs with higher success potential.

This acquisition not only underscores the commitment of both companies to advancing cancer treatment but also highlights the importance of strategic partnerships in the biotech industry. The involvement of reputable advisors such as Gibson, Dunn & Crutcher LLP and Loyens & Loeff N.V for XOMA, and Leerink Partners, Cooley LLP, and NautaDutilh N.V. for LAVA, further validates the transaction's significance. For more information on the companies involved, visit https://www.xoma.com and https://www.lavatherapeutics.com.