XOMA to acquire Kinnate Biopharma

Shares of US cancer drug developer Kinnate Biopharma (Nasdaq: KNTE) closed up 12.3% at $2.55 on Friday, on news of a takeover bid from biotech royalty aggregator XOMA Corp (Nasdaq: XOMA).

XOMA’s offer is for (i) a base cash price of $2.3352 per share and (ii) an additional cash amount of not more than $0.2527 per share at the closing of the merger plus a non-transferable contingent value right (CVR), representing the right to receive 85% of the net proceeds from any out license or sale of the Kinnate programs effected within one year of closing of the merger or 100% of the net proceeds from any out license or sale executed prior to the closing, which is expected in April 2024.

“This acquisition will further add to our sizable cash balance that resulted from the Vabysmo transaction, as well as potentially add several programs to our royalty portfolio,” stated Owen Hughes, chief executive of XOMA. “Given our successful history of out licensing assets and technologies, we will look to monetize Kinnate’s precision oncology programs to the benefit of Kinnate and XOMA shareholders alike,” he added.