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Investing.com -- LAVA Therapeutics N.V. (NASDAQ:LVTX) stock rose 4.2% following the announcement of a definitive share purchase agreement with XOMA Royalty Corporation (NASDAQ:XOMA).
Under the terms of the agreement, XOMA Royalty will acquire LAVA for between $1.16 and $1.24 per share in cash, plus a non-transferable contingent value right (CVR) representing 75% of net proceeds from LAVA’s partnered assets and any out-licensing or sale of unpartnered programs.
The acquisition follows what LAVA described as a "thorough and wide-ranging strategic review process" aimed at maximizing shareholder value. LAVA’s Board of Directors unanimously approved the agreement and recommends shareholders support and accept the offer.
XOMA Royalty CEO Owen Hughes stated, "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."
As part of the transaction, LAVA plans to discontinue its Phase 1 clinical trial of LAVA-1266 for acute myeloid leukemia and myelodysplastic syndrome and will wind down the program.
XOMA Royalty will commence a tender offer by August 15, 2025, with transaction closing expected in the fourth quarter of 2025. The offer requires tender of at least 80% of LAVA’s outstanding shares and approval at LAVA’s shareholders meeting, among other conditions.
Leerink Partners is acting as exclusive financial advisor to LAVA for the transaction.
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