Benzinga - by Vandana Singh, Benzinga Editor.
Friday, XOMA Corporation (NASDAQ:XOMA) agreed to acquire Kinnate Biopharma Inc (NASDAQ:KNTE) for a base cash price of $2.3352 per share and an additional cash amount of not more than $0.2527 per share plus a non-transferable contingent value right (CVR).
Kinnate Biopharma is a clinical-stage precision oncology company focused on developing cancer-targeted therapies. XOMA will commence a tender offer by March 4, 2024.
In November 2023, Kinnate Biopharma’s board of directors received a letter from Foresite Capital Management and OrbiMed Advisors indicating their intent to explore and evaluate a potential acquisition of the company.
“This acquisition will further add to our sizable cash balance that resulted from the VABYSMO transaction, as well as potentially add several programs to our royalty portfolio,” stated Owen Hughes, XOMA’s CEO.
Kinnate shareholders holding approximately 46% of Kinnate common stock have signed support agreements under which such shareholders agreed to tender their shares in the offer and support the merger. The acquisition is expected to close in April 2024.
In January, XOMA acquired an economic interest in Dsuvia (sufentanil sublingual tablet) from Talphera Inc. for $8 million.
The FDA approved Dsuvia in 2018 for use in adults in certified medically supervised healthcare settings for the management of acute pain severe enough to require an opioid analgesic and for which alternative treatments are inadequate.
In April 2023, Talphera divested Dsuvia to Alora Pharmaceuticals for an upfront payment, a 15% royalty on commercial net sales, a 75% royalty on net sales to the U.S. Department of Defense (DoD), and up to $116.5 million in milestone payments.
In September 2023, Kinnate Biopharma prioritized the exarafenib combination, KIN-8741, and discovery efforts around its CDK4 selective program.
Kinnate also implemented a corporate restructuring by reducing the company’s workforce by approximately 70%. It expects to have 28 remaining full-time employees.
Price Action: KNTE shares are up 11.45% at $2.53, and XOMA stock is up 5.23% at $23.34 on the last check Friday.
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