Lava engulfed by Xoma

Distressed biotechs continue falling to the likes of Concentra Biosciences and Xoma Royalty, and the latest to succumb is the γδ T-cell engager specialist Lava Therapeutics. Despite having Johnson & Johnson and Pfizer as partners, the group has been evaluating “strategic options” for some time, and it agreed on Monday to be taken out by Xoma for $1.16-1.24 per share, or $30.5-32.6m in total. Lava is discontinuing development of its lead project, LAVA-1266, so the main draw for Xoma, as is typical in these types of deals, is its target’s cash balance, $66.6m as of the end of March. The deal also includes a CVR that gives Lava shareholders a chance to get 75% of proceeds relating to the company’s two partnered assets, PF-08046052 and JNJ-89853413, as well as 75% of the proceeds from any licensing deal or sale involving an unpartnered Lava project. This is the third similarly structured deal that Xoma has struck this year, after swooping for Essa Pharma and Turnstone Biologics. Meanwhile, the Tang Capital Partners-backed Concentra Biosciences has scooped up various companies including, most recently, the erstwhile TIGIT player iTeos.

Lava Therapeutics’ γδ T-cell engagers

Source: OncologyPipeline.