XOMA Acquires Kinnate Biopharma: Advancing Precision Oncology

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XOMA, a prominent biotechnology royalty aggregator, has announced its plans to acquire clinical-stage precision oncology company, Kinnate Biopharma. This strategic acquisition aims to strengthen XOMA’s position in the market and expand its royalty portfolio.

The Deal

Under the agreement, XOMA will acquire Kinnate for a base cash price of $2.3352 a share, with the potential for an additional cash amount of up to 25.27 cents a share, bringing the total price to a maximum of $2.5879 per share.

Market Performance

Kinnate shares have faced significant downward pressure over the past year, dropping by over 67%. The closing price on Thursday was $2.27. Both companies’ shares were temporarily halted in premarket trading.

Strategic Benefits

Owen Hughes, Chief Executive of XOMA, anticipates that this acquisition will not only bolster the company’s cash balance but also enable the integration of several promising precision oncology programs. These programs could potentially yield substantial benefits for both Kinnate and XOMA shareholders.

Unanimous Approval

Kinnate’s board of directors has unanimously agreed that the acquisition is in the best interest of the company’s shareholders. This endorsement solidifies the alignment of interests between Kinnate and XOMA.

Tender Offer and Shareholder Support

A wholly owned subsidiary of XOMA will commence a tender offer to acquire all outstanding shares of Kinnate common stock by March 4. Additionally, officers, directors, and shareholders holding approximately 46% of Kinnate’s common stock have already signed support agreements, further highlighting the positive reception of this acquisition.

Future Outlook

The transaction is expected to be finalized within the first half of this year. With this acquisition, XOMA is poised to make significant advancements in the field of precision oncology.

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