Xoma Royalty Corp. has agreed to acquire Mural Oncology in a deal valued at $35.2-38.8 million, marking another liquidation transaction in the struggling biotech sector. The acquisition price of $2.035 per share represents approximately a 13% premium to Mural's Tuesday closing price of $1.80, with an additional $0.205 per share payable if the company's net cash holdings exceed $36.2 million at closing.
The deal comes after Mural's strategic review process following the discontinuation of its lead asset, nemvaleukin alfa, an IL-2-based cancer therapy. The company scrapped development of the drug in April after failures in the Artistry-6 and 7 clinical trials, subsequently laying off 90% of its workforce. Mural also discontinued its preclinical IL-18 and IL-12 projects, MURA-8518 and MURA-7012 respectively.
Financial Considerations Drive Acquisition
The primary attraction for Xoma appears to be Mural's cash reserves. As of June 2025, Mural held $77.1 million in cash and expected to have $43-48 million by year end. The acquisition structure allows Xoma to potentially profit from the difference between the purchase price and Mural's actual cash holdings at closing.
"We believe that this transaction, which is supported by our board, achieves the goal of this strategic review process, which was to maximize shareholder value," said CEO Caroline Loew in the announcement. Xoma plans to wind down Mural's business operations following the acquisition's completion.
Growing Trend of Biotech Liquidations
The Mural acquisition extends a pattern among investment firms targeting biotechnology companies whose depressed share prices leave them trading below their cash holdings. These so-called "zombie" biotechs historically would pivot to new projects or pursue merger opportunities, but investors are increasingly pressuring company boards to return cash to shareholders through liquidation deals.
Xoma has emerged as an active participant in this trend, having announced deals since June to acquire Turnstone Biologics, Lava Therapeutics, and HilleVax. The company also financed a buyout of Essa Pharma in July. All four companies had experienced significant share value declines following disappointing clinical results or other setbacks.
Broader Market Dynamics
Other investment entities are pursuing similar strategies. Tang Capital Partners-backed Concentra Biosciences has acquired several struggling companies including Elevation Oncology, iTeos Therapeutics, and Kronos Bio. Additional companies like Pliant Therapeutics and Keros Therapeutics have faced investor pressure for similar transactions.
Mural Oncology originally spun out from Alkermes in 2023 with hopes that nemvaleukin would succeed where previous IL-2-focused therapies had failed. The company's inability to demonstrate efficacy in multiple clinical studies ultimately led to its strategic review and subsequent acquisition by Xoma.
The transaction reflects the challenging environment facing biotechnology companies with limited pipeline prospects, where cash-rich acquirers can profit from the difference between market valuations and actual asset values.
