August 21, 2025 — In a move that underlines the growing consolidation in the biotechnology sector, XOMA Royalty Corporation, through its wholly owned subsidiary XRA 5 Corp., has entered into a definitive agreement to acquire Mural Oncology, a clinical-stage immuno-oncology company, in a premium cash transaction. The deal values Mural Oncology at up to $36.2 million, a significant 13.1% premium over Mural’s pre-announcement closing price and a striking 97.6% premium compared to its value prior to a recent strategic review.

Deal Structure and Shareholder Impact

According to terms of the agreement, Mural Oncology shareholders will receive a base cash payment of $2.035 per share, with the potential for an incremental payment of up to $0.205 per share dependent upon net closing cash, maximizing shareholder returns. This approach is increasingly common in the sector, with acquirers seeking to balance upfront payments with contingencies tied to retained financial resources.

The acquisition has been unanimously approved by the boards of directors of Mural Oncology, XOMA Royalty, and XRA 5 Corp. Mural’s senior management and directors, holding a minority stake in the company’s outstanding shares, restricted stock units, and options, have committed to vote in favor of the transaction. Any outstanding options with strike prices above the total transaction consideration will be canceled at closing.

“The transaction agreement with XOMA Royalty is the result of a thorough and wide-ranging strategic review process,” said Dr. Caroline Loew, CEO of Mural Oncology. “We believe this outcome delivers on our goal to maximize value for our shareholders while positioning our assets with a partner committed to advancing oncology innovation.”

Strategic Context: XOMA’s 2025 Acquisition Streak

This acquisition fits firmly within XOMA Royalty’s aggressive acquisition strategy in 2025, which has seen the company secure several late- and clinical-stage biotech assets. Over the past year, XOMA has executed a series of M&A transactions, seeking to diversify its royalty revenue streams and position itself as a leading aggregator of future biopharmaceutical royalties.

Earlier this year, XOMA concluded the acquisition of HilleVax and advanced the takeover of Turnstone Biologics, both structured with attractive premiums for shareholders and featuring contingent value rights (CVRs) to ensure alignment on commercial and financial milestones. With Mural Oncology, XOMA strengthens its presence in the high-growth immuno-oncology space, one of the most sought-after segments in biopharma.

Recent Acquisitions: HilleVax and Turnstone Biologics

HilleVax Acquisition: In early August 2025, XOMA reached a definitive merger agreement with HilleVax for $1.95 per share in cash, plus a contingent value right tied to future events. HilleVax shareholders stand to benefit from:

• Payouts on net cash retained at closing above $102.95 million.
• A share of cost savings if XOMA assumes and subleases HilleVax’s Boston office obligations.
• Potential proceeds from the sale or licensing of HilleVax’s remaining norovirus vaccine assets, provided regulatory progress is made within five years.

Turnstone Biologics Acquisition: In June 2025, XOMA also agreed to acquire Turnstone Biologics for $0.34 per share in cash and a non-transferable CVR. The merger, backed by more than 25% of Turnstone’s shareholders, is conditional upon minimum cash thresholds and the tendering of a majority of shares.

Strategic Drivers: Royalty Aggregation & Immuno-Oncology Expansion

The competitive landscape for biopharmaceutical royalty companies has intensified as large funds and specialty players seek predictable revenue streams from future drug sales. XOMA has distinguished itself by targeting clinical programs with de-risked late-stage data and clear commercialization prospects. The addition of Mural Oncology’s pipeline positions XOMA for greater leverage in the next wave of immuno-oncology advancements and strategic out-licensing opportunities.

Immuno-oncology, which harnesses the body’s immune system to fight cancer, remains one of the biotech industry’s most promising fields. According to GlobalData, the global immuno-oncology market is projected to surpass $140 billion by 2030, driven by strong clinical momentum, FDA approvals, and rising investment in next-generation checkpoint inhibitors, CAR-T therapies, and combination regimens. XOMA’s latest moves put its investors squarely in the path of this growth.

Market and Investor Reaction

Financial markets responded favorably to the deal announcement. Mural Oncology shares surged following the news, reflecting the double-digit premium and heightened strategic interest from well-capitalized royalty conglomerates. Meanwhile, analysts noted XOMA’s growing reputation for deal execution and shareholder alignment, with its aggressive 2025 acquisition timeline marking it as one of the year’s most active consolidators in the clinical-stage biotech space.

“These targeted acquisitions provide XOMA with near- and long-term royalty streams that could yield significant upside as acquired assets move toward commercialization,” commented Lisa Romanchuk, a biotech M&A analyst at Evercore ISI. “They’re building a diversified royalty portfolio ahead of what’s expected to be a renewed boom in oncology approvals and partnerships.”

Industry Outlook and Broader Implications

The wave of M&A activity led by XOMA in 2025 mirrors industry trends as mature biotech firms seek both liquidity and strategic platforms for growth. Small- and mid-cap biotechs, in particular, face increasing pressure from tight funding environments, rising development costs, and complex regulatory hurdles, fuelling deal-making momentum. According to PitchBook, the first half of 2025 saw a 15% year-over-year increase in pharma M&A volume, with immuno-oncology drawing outsized attention.

For Mural Oncology, the XOMA acquisition offers a path to value realization, continuation of its research, and access to XOMA’s operational and strategic resources. For XOMA, it’s a calculated bet on a segment poised for robust growth, potentially paving the way for future partnerships, asset out-licensing, and enhanced royalty streams.

What’s Next?

The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory and shareholder approvals. XOMA executives have expressed confidence in the timeline, citing committed support from key Mural directors and ongoing integration planning. As consolidation continues apace, the industry will be closely watching to see which other biopharma companies become the next acquisition targets — and how XOMA’s growing portfolio delivers returns as late-stage biotech assets transition to commercial success.