H.C. Wainwright analyst Joseph Pantginis says the acquisition of Kinnate Biopharma (KNTE) boosts Xoma‘s (XOMA) long-term asset base for royalty growth potential. The firm learned from management the acquisition was a competitive process with the contingent value right ratio of 85%/15% versus the more typical 80%/20% being one of the sweeteners to get the transaction over the finish line. Wainwright views the announcement as “another impressive strategic deal” for Xoma that brings in another revenue stream as well as continues to validate its strategy. The firm keeps a Buy rating on the shares with a $74 price target.
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Read More on XOMA:
- Xoma Corp Secures Merger with Kinnate Biopharma Inc.
- XOMA Enters into Agreement to Acquire Kinnate Biopharma for Between $2.3352 and $2.5879 in Cash Per Share Plus a Contingent Value Right
- XOMA Expands its Commercial Royalty and Milestone Portfolio with DSUVIA® Acquisition
- Xoma expands commercial royalty, milestone portfolio with DSUVIA acquisition
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