XOMA Royalty Corp’s Bold Acquisition of Mural Oncology: A Strategic Gamble

The latest move by XOMA Royalty Corp—the Nasdaq‑listed biotechnology royalty aggregator—has sent shockwaves through the biotech finance community. On 26 November 2025, the company announced it would acquire Mural Oncology for $2.035 per share, a deal that reflects both XOMA’s aggressive expansion strategy and its willingness to bet on unproven clinical candidates.

The Deal’s Anatomy

  • Purchase Price: XOMA will pay $2.035 for each share of Mural Oncology, a valuation that, while modest, signals confidence in the future royalty streams the target may generate.
  • Cash Consideration: Mural’s board confirmed that the final cash consideration will be paid at the closing of the transaction, which is set for 22:00 on 26 November 2025.
  • No Dilution or Recourse: Consistent with XOMA’s business model, the acquisition will provide Mural with non‑dilutive, non‑recourse funding, allowing the oncology company to advance its pre‑commercial clinical pipeline without compromising equity or increasing leverage.

The announcement was corroborated by Investing.com, Taiwan News, and GlobeNewswire, all reporting the same terms, underscoring the transaction’s credibility and urgency.

Why This Move Matters

XOMA’s core value proposition is to aggregate royalties and milestone payments from biotech firms in exchange for upfront capital. By adding Mural Oncology to its portfolio, XOMA gains:

  1. Diversified Revenue Streams: Mural’s focus on oncology positions XOMA in a high‑growth therapeutic area, potentially offsetting volatility from other sectors.
  2. Enhanced Pipeline Exposure: Access to Mural’s pre‑commercial clinical candidates expands XOMA’s risk profile—if any of these candidates achieve regulatory approval, the royalty payouts could be substantial.
  3. Competitive Advantage: Few royalty aggregators have the scale or the industry focus to compete in oncology, giving XOMA a niche advantage that could translate into higher acquisition prices for future deals.

Market Reactions and Valuation Context

  • Stock Performance: XOMA’s share price closed at $31.85 on 24 November 2025, with a 52‑week high of $39.92 and a low of $18.35. The market cap sits at $393.78 million, and the P/E ratio is 38.72, indicating that investors are pricing in high growth expectations.
  • Implications of the Acquisition: The $2.035 per share price represents a premium over recent trading levels, suggesting that XOMA’s board is willing to pay above market value for strategic assets. However, the transaction’s success hinges on Mural’s ability to convert early‑stage candidates into revenue‑generating products.

Risks and Criticisms

  • Execution Risk: The deal’s value depends entirely on Mural’s future milestones—a high‑failure‑rate proposition in oncology research.
  • Financial Risk: Although the acquisition is non‑recourse, it still requires XOMA to secure sufficient capital to fund the purchase and ongoing operations.
  • Market Sentiment: With a lofty P/E ratio, any underperformance in Mural’s pipeline could trigger a sharp reevaluation of XOMA’s stock.

Bottom Line

XOMA Royalty Corp’s purchase of Mural Oncology is a bold, high‑stakes bet on the next generation of cancer therapeutics. It expands XOMA’s reach into a lucrative market and offers a potentially lucrative revenue stream if Mural’s pipeline succeeds. Yet, the deal’s success remains contingent on factors that are, by nature, uncertain. Investors and industry watchers alike should scrutinize the acquisition’s progression with a critical eye, recognizing that this move could either propel XOMA to unprecedented heights or expose it to significant downside.