XOMA Royalty Corporation has entered into a definitive agreement to acquire clinical-stage immuno-oncology company Mural Oncology through its wholly owned subsidiary XRA 5 Corp., in a transaction valued at up to $36.2 million. The deal represents the latest in XOMA's series of strategic acquisitions throughout 2025, strengthening its position in late-stage and clinical-stage biotech assets.
Transaction Structure and Shareholder Value
Under the acquisition agreement, Mural shareholders will receive a base cash price of $2.035 per share, with the potential for an additional payment of up to $0.205 per share depending on the company's net cash at closing. The offer represents a 13.1% premium over Mural's closing price on August 19, 2025, and a substantial 97.6% premium compared to its pre-strategic review price in April 2025.
"The transaction agreement with XOMA Royalty announced today is the result of a thorough and wide-ranging strategic review process, conducted with the support of our legal and financial advisors," said Caroline Loew, PhD, CEO of Mural Oncology. "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."
The boards of directors of Mural Oncology, XOMA Royalty, and XRA 5 have all approved the transaction. Mural's directors, who hold a small proportion of the company's shares, restricted stock units, and options, have committed to vote in favor of the acquisition.
XOMA's 2025 Acquisition Strategy
The Mural Oncology acquisition adds to XOMA's aggressive acquisition streak in 2025, highlighting the company's strategy to expand its portfolio of late-stage and clinical-stage biotech assets through targeted transactions.
HilleVax Merger Agreement
Earlier in 2025, XOMA reached a definitive merger agreement with HilleVax, under which HilleVax stockholders were expected to receive $1.95 in cash per share plus one non-transferable contingent value right (CVR). The CVR structure provides shareholders with potential additional payments from three sources: any HilleVax cash remaining above $102.95 million at closing, 90% to 100% of savings from XOMA Royalty's assumption of HilleVax's Boston office lease obligations, and 90% of net proceeds from any sale or disposition of HilleVax's remaining norovirus vaccine programs within specified timeframes.
Turnstone Biologics Transaction
In late June 2025, XOMA announced a definitive merger agreement to acquire Turnstone Biologics for $0.34 in cash per share plus one non-transferable CVR. The transaction's closing was contingent on several conditions, including majority share tender, minimum cash balance maintenance, and other customary requirements. Turnstone stockholders holding approximately 25.2% of the company's shares had already agreed to tender their holdings in support of the merger.
Moving Forward
Owen Hughes, CEO of XOMA Royalty, emphasized the company's commitment to expediting the acquisition process. "XOMA Royalty looks forward to working with Mural to close the transaction as soon as possible," he stated.
The acquisition reflects XOMA's continued focus on building a diversified portfolio of biotech assets, particularly in the immuno-oncology space where Mural Oncology operates. The transaction is expected to close subject to customary closing conditions and regulatory approvals.
