XOMA Royalty Corporation (NASDAQ:XOMA) has unveiled plans to acquire two biotech firms—HilleVax, Inc. (NASDAQ:HLVX) and LAVA Therapeutics N.V. (NASDAQ:LVTX)—through separate deals that combine upfront cash offers with contingent value rights (CVRs).
In its agreement with HilleVax, XOMA Royalty will pay $1.95 in cash per share, along with a CVR that could deliver additional returns to shareholders. These include access to any remaining company cash exceeding $102.95 million, a share of the cost savings—between 90% and 100%—from HilleVax’s Boston lease obligations, and 90% of any future proceeds from the licensing or sale of its norovirus vaccine assets, provided such deals occur within five years of regulatory approval.
Following a strategic review, HilleVax’s board gave unanimous approval to the merger. A tender offer is expected to launch by August 18, 2025, and close by September. Roughly 22.9% of shareholders have already committed to participate.
In a separate deal, XOMA Royalty will acquire LAVA Therapeutics for a price between $1.16 and $1.24 per share in cash, supplemented by a CVR that grants rights to 75% of net proceeds linked to LAVA’s partnered pipeline, as well as potential income from the out-licensing or sale of unpartnered programs.
“We believe the structure of this transaction has the potential to benefit both LAVA and XOMA Royalty shareholders over time,” said Owen Hughes, Chief Executive Officer of XOMA Royalty. “We are adding economics related to LAVA’s partnered programs investigating the utility of gamma delta bispecific antibodies, which hold significant promise for patients.”
LAVA’s board also voted unanimously in favor of the acquisition and recommends that shareholders accept the offer. The tender process is scheduled to begin by August 15, 2025, with final closure expected in Q4 of the year.
As part of the transaction, LAVA will halt its Phase 1 clinical trial of LAVA-1266 for acute myeloid leukemia and myelodysplastic syndromes, and plans to phase out the program.
XOMA Royalty Corporation stock price
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