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.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
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
- Xoma to make $1M payment to LadRx after FDA acceptance of arimoclomol NDA