XOMA Royalty Corporation to Acquire LAVA Therapeutics 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 bolsters its portfolio with LAVA's pioneering gamma delta bispecific antibodies. These antibodies are currently being explored for their potential to revolutionize cancer treatment, offering new hope for patients with various forms of the disease. The acquisition, valued at between $1.16 and $1.24 per share, includes a non-transferable contingent value right (CVR), which could further enhance the deal's value for shareholders.

The structure of the deal is designed to maximize benefits for both companies' stakeholders. With a base price of $1.16 per share and an additional potential $0.08 per share contingent on specific conditions, the agreement also grants shareholders 75% of the net proceeds from LAVA's partnered assets and unpartnered programs through the CVR. This aspect of the deal underscores the long-term value creation potential for shareholders, aligning with LAVA's strategic review process aimed at maximizing shareholder value.

LAVA's Board of Directors has unanimously approved the transaction, which is contingent upon standard closing conditions, including the tender of at least 80% of LAVA's outstanding shares and shareholder approval. The acquisition is anticipated to conclude in the fourth quarter of 2025, marking a significant milestone for both companies.

In anticipation of the acquisition, LAVA Therapeutics will halt its Phase 1 clinical trial of LAVA-1266 for acute myeloid leukemia and myelodysplastic syndrome. This decision reflects a strategic pivot towards prioritizing programs with the highest likelihood of success, a move that is expected to streamline research efforts and focus resources on the most promising treatments.

The transaction is supported by a team of advisors, including Gibson, Dunn & Crutcher LLP and Loyens & Loeff N.V for XOMA Royalty, and Leerink Partners, Cooley LLP, and NautaDutilh N.V. for LAVA Therapeutics. For further details on XOMA Royalty, visit https://www.xoma.com, and for more information on LAVA Therapeutics, visit https://www.lavatherapeutics.com.