LAVA Therapeutics N.V. (NASDAQ:LVTX) saw its stock rise 4.2% following news of a share purchase agreement with XOMA Royalty Corporation (NASDAQ:XOMA), under which XOMA will acquire LAVA in a cash and milestone-based deal.
As outlined in the terms, shareholders of LAVA will receive between $1.16 and $1.24 per share in cash, along with a non-transferable contingent value right (CVR) that entitles them to 75% of net proceeds generated from partnered assets and any future licensing or sale of unpartnered programs.
The transaction is the result of what LAVA described as a “thorough and wide-ranging strategic review process” intended to unlock maximum value for shareholders. The company’s Board of Directors has unanimously approved the deal and is urging shareholders to vote in favor.
“We believe the structure of this transaction has the potential to benefit both LAVA and XOMA Royalty shareholders over time. We are adding economics related to LAVA’s partnered programs investigating the utility of gamma delta bispecific antibodies, which hold significant promise for patients,” said Owen Hughes, CEO of XOMA Royalty.
In conjunction with the acquisition, LAVA will discontinue its Phase 1 trial of LAVA-1266, a treatment candidate for acute myeloid leukemia and myelodysplastic syndrome, and begin winding down the program.
XOMA Royalty is expected to initiate a tender offer by August 15, 2025, with the deal likely to close in the fourth quarter of the year. Completion is contingent on the tender of at least 80% of LAVA’s outstanding shares, shareholder approval, and other closing conditions.
Leerink Partners is serving as LAVA’s exclusive financial advisor for the transaction.
XOMA Royalty Corporation stock price
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