Street Calls of the Week
EMERYVILLE/UTRECHT/PHILADELPHIA - XOMA Royalty Corporation (NASDAQ:XOMA) has extended the deadline for its tender offer to acquire all outstanding shares of LAVA Therapeutics N.V. (NASDAQ:LVTX) until October 17, 2025, according to a statement released Thursday. LAVA, currently trading at $1.55 with a market capitalization of $40.9 million, has seen its shares surge over 61% year-to-date. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
The offer, previously set to expire on October 3, includes payment consisting of a cash amount plus a non-transferable contingent value right representing 75% of net proceeds from LAVA’s partnered assets and any future out-licensing or sale of unpartnered programs. InvestingPro data reveals that LAVA maintains a strong liquidity position with a current ratio of 10.78, though the company is quickly burning through its cash reserves.
The acquisition is expected to close in the fourth quarter of 2025, subject to certain conditions including the tender of at least 80% of LAVA’s outstanding shares and adoption of specific resolutions at LAVA’s shareholder meeting scheduled before early November.
LAVA shareholders who have already tendered their shares do not need to take any further action in response to this extension. Several LAVA shareholders have signed support agreements to tender their shares prior to the expiration date.
Following a subsequent offering period, LAVA will undergo a corporate reorganization designed to result in XOMA Royalty acquiring 100% of shares in LAVA’s successor, with remaining shareholders receiving the same consideration as provided in the tender offer.
LAVA’s clinical portfolio includes two partnered bispecific gamma delta T cell engagers developed using its proprietary Gammabody platform: JNJ-89853413, targeting CD33 and hematologic cancers in partnership with Johnson & Johnson, and PF-08046052, targeting EGFR and solid tumors in partnership with Pfizer.
The information in this article is based on a press release statement from both companies.
In other recent news, LAVA Therapeutics is set to be acquired by XOMA Royalty in a definitive share purchase agreement. The acquisition will be carried out for between $1.16 and $1.24 per share in cash, alongside a non-transferable contingent value right (CVR) linked to LAVA’s partnered and unpartnered assets. This development follows XOMA Royalty’s strategy to expand its portfolio, as it also plans to acquire HilleVax in a separate deal. As part of the HilleVax acquisition, XOMA Royalty will pay $1.95 in cash per share, with additional CVRs tied to various financial outcomes. In light of these acquisitions, Jefferies has downgraded LAVA Therapeutics from Buy to Hold, reducing its price target to $1.50 from the previous $3.00. These recent developments have captured the attention of investors and analysts alike, as they signal strategic shifts for both LAVA Therapeutics and XOMA Royalty.
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