XOMA Royalty Enhances Portfolio with Strategic Acquisition of LAVA Therapeutics
San Francisco, Friday, 21 November 2025.
XOMA Royalty Corporation finalizes the acquisition of LAVA Therapeutics, integrating two partnered assets to boost future revenue through milestone and royalty agreements, strengthening its biopharmaceutical position.
Acquisition Details and Strategic Importance
XOMA Royalty Corporation (NASDAQ: XOMA) has successfully completed the acquisition of LAVA Therapeutics N.V., a clinical-stage biotechnology company based in Utrecht, Netherlands. The acquisition was finalized on November 20, 2025, and involved the purchase of all outstanding common shares of LAVA Therapeutics. LAVA shareholders received $1.04 in cash per share, along with a non-transferable contingent value right (CVR) per share. This CVR entitles the holders to 75% of any net proceeds from LAVA’s partnered and unpartnered programs, potentially adding up to approximately $0.23 per CVR after final determination of liabilities [1].
Impact on XOMA’s Portfolio
The integration of LAVA’s assets is a strategic maneuver to enhance XOMA’s portfolio with two early-stage bispecific antibodies, developed in collaboration with leading oncology partners such as Johnson & Johnson and Pfizer. This acquisition aligns with XOMA’s business model as a biotech royalty aggregator, focusing on acquiring future economic rights associated with pre-commercial and commercial therapeutic candidates. By doing so, XOMA aims to bolster its revenue streams through milestone and royalty agreements, positioning itself as a formidable player in the biopharmaceutical sector [1][2].
Market and Financial Implications
Following the acquisition, LAVA Therapeutics has announced plans to delist from NASDAQ and deregister under the Securities Exchange Act of 1934. This move underscores the transformative nature of the acquisition for both companies. XOMA, with its enhanced portfolio, anticipates significant contributions to its revenue, further supported by its strong financial performance in 2024, where it reported a revenue increase of 498.72% compared to the previous year [1][2][3].
Future Outlook and Industry Context
This acquisition not only strengthens XOMA’s market position but also reflects broader industry trends where companies like Zymeworks are increasingly focusing on royalty aggregation to reduce dependence on high-risk, late-stage development. As XOMA continues to execute its strategy, the integration of LAVA’s innovative therapies is expected to provide a competitive edge in the oncology field, marking a pivotal moment in the company’s growth trajectory [1][3].