XOMA Royalty Corporation closed its purchase of all outstanding shares of LAVA Therapeutics N.V. on November 21, 2025. The deal gives LAVA shareholders $1.04 in cash per share and a non‑transferable contingent value right that entitles them to 75 % of any net proceeds from LAVA’s partnered assets, plus up to $0.23 per CVR after liability determinations.
The acquisition adds two early‑stage bispecific antibody programs that engage gamma‑delta T cells and are partnered with Johnson & Johnson’s Janssen and Pfizer. By bringing these assets into its portfolio, XOMA expands its royalty and milestone revenue base and strengthens its position as a mid‑tier biotech royalty aggregator that seeks to capture upside from high‑potential therapeutic candidates.
XOMA’s financial performance has improved markedly in 2025. In the third quarter, the company reported a net income of $14.05 million, compared with a net loss of $17.24 million in the same quarter of 2024. The turnaround was driven by increased income from its commercial products VABYSMO and OJEMDA, as well as gains on the HilleVax and Turnstone acquisitions. For the nine months ended September 30, 2025, XOMA posted a net income of $25.61 million versus a net loss of $9.85 million in the prior year, underscoring the company’s ability to convert royalty and milestone inflows into profitability.
CEO Owen Hughes said the deal "reinforces XOMA’s philosophy of ‘strength in numbers,’ adding two early‑stage bispecific antibodies in collaboration with well‑established oncology partners, Johnson & Johnson and Pfizer." He added that the combination of future milestones and royalties from the LAVA programs has the potential to drive significant value creation for both LAVA CVR holders and XOMA Royalty.
The acquisition aligns with XOMA’s strategy of acquiring economic rights to future milestone and royalty payments. By adding LAVA’s early‑stage programs, the company broadens its exposure to oncology therapeutics and positions itself to benefit from the commercial success of the partnered assets. While LAVA faced financial challenges before the deal, the cash component and contingent value right provide immediate value to shareholders and a share of future upside, supporting XOMA’s long‑term growth trajectory.
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