XOMA Royalty has acquired LAVA Therapeutics, a Dutch biopharmaceutical company, enhancing its portfolio with innovative therapies while providing shareholders with cash and contingent value rights.

Target Company Overview

XOMA Royalty has successfully completed its acquisition of LAVA Therapeutics, a biopharmaceutical firm based in the Netherlands. LAVA Therapeutics specializes in the development of clinical-stage bispecific gamma delta T cell engagers, utilizing its proprietary Gammabody platform. This innovative approach positions LAVA as a notable player in the therapeutic landscape, with several promising assets in conjunction with its partnered programs.

As part of the acquisition deal, LAVA shareholders will receive $1.04 in cash per share, along with a non-transferrable contingent value right (CVR). This CVR grants shareholders rights to future cash payments, including 75% of any net proceeds from LAVA's partnered assets and 75% of proceeds from the out-license or sale of any unpartnered programs. Additionally, shareholders could receive approximately $0.23 per CVR, contingent upon resolutions of specified liabilities after closing.

Industry Overview in the Netherlands

The biotechnology sector in the Netherlands has witnessed remarkable growth over the past decade, becoming a European hub for innovation and research in life sciences. The Netherlands is home to numerous biotech companies, research institutes, and