XOMA Royalty to be Acquired by Ligand Pharmaceuticals for $739M in Cash Plus Contingent Value Rights

summarizeSummary

XOMA Royalty Corp has signed a definitive merger agreement to be acquired by Ligand Pharmaceuticals for $39.00 per share in cash, plus a Contingent Value Right (CVR) tied to litigation proceeds, in a deal valued at approximately $739 million.

check_boxKey Events

• Definitive Merger Agreement Signed

  XOMA Royalty Corp has entered into an Agreement and Plan of Merger with Ligand Pharmaceuticals Incorporated, under which Ligand will acquire XOMA Royalty.

• Cash Consideration of $39.00 Per Share

  Shareholders will receive $39.00 per share in cash, totaling approximately $739 million in equity value. This represents an approximate 14% premium to XOMA Royalty's 30-day volume weighted average price as of April 24, 2026.

• Contingent Value Right (CVR) Included

  In addition to cash, shareholders will receive one non-transferable CVR per share, representing a right to 75% of the net proceeds from the pending Janssen litigation regarding TREMFYA®.

• Strong Shareholder Support

  Entities affiliated with BVF Partners (approximately 47% of voting power after Series X conversion) and XOMA Royalty's directors and officers have signed voting agreements in support of the transaction.

auto_awesomeAnalysis

XOMA Royalty Corp has entered into a definitive merger agreement to be acquired by Ligand Pharmaceuticals for approximately $739 million, or $39.00 per share in cash. This represents a significant premium to XOMA Royalty's recent trading price prior to the announcement, fundamentally altering the company's future. In addition to the cash, shareholders will receive a Contingent Value Right (CVR) for each share, entitling them to 75% of the net proceeds from the ongoing Janssen litigation, providing potential upside from a key legal dispute. The deal is strongly supported by major shareholders, including BVF Partners (representing approximately 47% of voting power after preferred stock conversion) and XOMA Royalty's directors and officers, who have entered into voting agreements. The transaction is expected to close in Q3 2026, subject to customary conditions and regulatory approvals. This filing formalizes the acquisition news that was reported earlier today, providing full details of the agreement.