Biotech Royalty Aggregator XOMA To Acquire Small Cancer-Drug Developer Kinnate Biopharma
Portfolio Pulse from Vandana Singh
XOMA Corporation (NASDAQ:XOMA) has agreed to acquire Kinnate Biopharma Inc (NASDAQ:KNTE) for a base cash price of $2.3352 per share, an additional cash amount of up to $0.2527 per share, and a contingent value right. The acquisition, expected to close in April 2024, aims to enhance XOMA's royalty portfolio, leveraging Kinnate's focus on cancer-targeted therapies. Kinnate shareholders representing 46% of common stock have agreed to support the merger. This follows XOMA's recent acquisition of an economic interest in Dsuvia from Talphera Inc. and Kinnate's strategic focus adjustments and workforce reduction.
February 16, 2024 | 5:55 pm
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POSITIVE IMPACT
Kinnate Biopharma's acquisition by XOMA Corporation for a base cash price and additional considerations is expected to close in April 2024, following strategic focus adjustments and workforce reduction.
Kinnate Biopharma's stock is likely to see a positive short-term impact from the acquisition announcement by XOMA, as reflected by the recent stock price increase. The acquisition aligns with Kinnate's focus on cancer-targeted therapies and follows significant corporate restructuring, indicating a strategic move that could benefit shareholders.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
XOMA Corporation's acquisition of Kinnate Biopharma is expected to enhance its royalty portfolio with cancer-focused therapies, following its recent economic interest acquisition in Dsuvia.
The acquisition of Kinnate Biopharma is likely to positively impact XOMA's stock in the short term due to the expansion of its royalty portfolio and the strategic addition of cancer-targeted therapies. The positive market reaction to the news, as indicated by the stock price increase, supports this outlook.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90