LAVA Therapeutics (LVTX) AI Stock Analysis

• Market Cap: $39.98M
• Dividend Yield: N/A
• Average Volume (3M): 122.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -60.20%
• EPS Growth: 3.85%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 26,305,296
• 10 Day Avg. Volume: 257,095
• 30 Day Avg. Volume: 122,467
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.80
• Enterprise Value/Revenue: -6.43
• Enterprise Value/Gross Profit: -6.74
• Enterprise Value/Ebitda: 1.35
• 1Y Price Target: $1.41
• Price Target Upside: -7.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 47 Neutral
• Price Target: $1.50 ▼(-1.32% Downside)

The overall stock score is primarily impacted by the company's poor financial performance and negative valuation metrics. While technical analysis shows some positive momentum, the strategic shifts and acquisition news provide mixed signals, contributing to a cautious outlook.

Positive Factors

Acquisition

XOMA's acquisition of LAVA in a cash-and-CVR deal has been unanimously approved by LAVA’s Board of Directors, potentially bringing benefits to shareholders.

Cash Position

LAVA's cash reserves of approximately $67M are considered sufficient to fund operations into 2027, providing a secure financial runway.

Financial Performance

LAVA reported better-than-expected financial results with $5M in license revenue and a smaller-than-anticipated net loss, exceeding consensus estimates.

Negative Factors

Clinical Data

The sole remaining wholly-owned clinical asset, LAVA-1266, lacks supportive clinical data, raising concerns about its potential success.

Earnings Projection

The projection of no revenue and a net loss of $1.46 per share for 2025 may negatively impact investor confidence.

Workforce Reduction

The company announced a workforce reduction of approximately 30%, which may indicate challenges in maintaining operational efficiency.

LAVA Therapeutics Business Overview & Revenue Model

Company Description

LAVA Therapeutics N.V., a clinical-stage immuno-oncology company, focuses on developing cancer treatments. The company, through its Gammabody platform, develops a portfolio of novel bispecific antibodies to engage and leverage the potency and precision of gamma delta T cells to elicit an anti-tumor immune response and enhance outcomes for cancer patients. Its lead clinical-stage candidates are LAVA-051, which is in Phase 1/2a clinical trial for blood cancers, including chronic lymphocytic leukemia, multiple myeloma, and acute myeloid leukemia; and LAVA-1207 that is in Phase 1/2a clinical trial for metastatic castration-resistant prostate cancer. The company is also developing other Gammabody drug candidates, which include LAVA-1223, which targets the epidermal growth factor receptor (EGFR) for the treatment of selected solid tumors, as well as LAVA-1266 and LAVA-1278, which are preclinical candidates for the treatment of various hematologic malignancies. LAVA Therapeutics N.V. has a research collaboration and license agreement with Janssen Biotech, Inc. for the potential discovery and development of multi-specific antibody products that are directed to a specified target in various fields of use. The company was incorporated in 2016 and is headquartered in Utrecht, the Netherlands.

How the Company Makes Money

LAVA Therapeutics generates revenue primarily through collaborative agreements, licensing, and milestone payments linked to its proprietary Gammabody™ platform. The company partners with larger pharmaceutical firms to co-develop and commercialize its innovative therapies, which often involves receiving upfront payments, research funding, and potential future royalties from successfully marketed products. Additionally, LAVA might engage in research grants and government funding opportunities to support its research initiatives, further contributing to its revenue streams.

LAVA Therapeutics Financial Statement Overview

Summary

LAVA Therapeutics faces significant financial challenges, including erratic revenue growth, persistent negative net income, and declining shareholder equity. Despite a reasonable debt position, these issues highlight a need for strategic focus on cost control and revenue generation.

Income Statement

LAVA Therapeutics has shown erratic revenue growth, with a drop from 2022 to 2023 followed by a recovery in 2024. However, the company has consistently reported negative net income, leading to negative net profit margins. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges. Despite a gross profit margin that is positive, the firm struggles to control costs and generate profit.

Balance Sheet

The debt-to-equity ratio has been relatively low, indicating conservative use of debt. However, the stockholders' equity has been declining, and the equity ratio is decreasing, suggesting weakening financial stability. The return on equity remains negative, reflecting the company's inability to generate profit from shareholders' funds.

Cash Flow

Operating cash flow has been negative, though there was a slight improvement in 2024. Free cash flow remains negative, indicating that the company is struggling to generate cash from operations after capital expenditures. The free cash flow to net income ratio is poor, highlighting inefficiencies in converting revenue into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.98M	6.77M	19.39M	5.35M	3.75M
Gross Profit	11.52M	3.29M	19.39M	5.35M	-11.95M
EBITDA	-23.50M	-40.53M	-30.88M	-41.02M	-14.65M
Net Income	-25.11M	-41.97M	-31.91M	-42.35M	-15.93M
Balance Sheet
Total Assets	80.83M	101.71M	143.43M	157.87M	25.16M
Cash, Cash Equivalents and Short-Term Investments	76.58M	95.57M	132.87M	151.01M	19.43M
Total Debt	5.28M	6.31M	5.45M	5.52M	5.01M
Total Liabilities	53.09M	50.53M	57.38M	23.67M	15.80M
Stockholders Equity	27.75M	51.18M	86.04M	134.19M	9.36M
Cash Flow
Free Cash Flow	-19.57M	-41.01M	3.46M	-33.34M	-9.81M
Operating Cash Flow	-19.54M	-38.97M	4.04M	-32.48M	-9.31M
Investing Cash Flow	12.47M	-17.64M	9.35M	-49.37M	-502.00K
Financing Cash Flow	-569.00K	-571.00K	283.00K	171.37M	18.97M

LAVA Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVTX, the sentiment is Positive. The current price of 1.52 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.40, and above the 200-day MA of 1.31, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 81.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVTX.

LAVA Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	60 Neutral	$67.02M	―	-69.96%	―	-99.64%	-59.17%
Sector *	51 Neutral	kr6.00B	8.79	-28.70%	2.24%	51.61%	19.20%
GBIO	50 Neutral	$44.86M	―	-85.45%	―	61.15%	54.71%
LVTX	47 Neutral	$39.98M	―	-90.07%	―	-60.20%	3.85%
GRCE	46 Neutral	$42.59M	―	-16.78%	―	―	32.31%
ALGS	44 Neutral	$46.66M	―	-87.74%	―	-60.16%	―
PYPD	41 Neutral	$34.95M	―	-312.77%	―	―	61.18%

LAVA Therapeutics Corporate Events

LAVA Therapeutics Announces Acquisition by XOMA Corporation

On August 13, 2025, LAVA Therapeutics announced its acquisition by XOMA Royalty Corporation, with the transaction expected to close in the fourth quarter of 2025. The acquisition, valued at between $1.16 and $1.24 per share, includes a contingent value right related to LAVA’s partnered and unpartnered programs. Additionally, LAVA has decided to discontinue the development of its LAVA-1266 program for acute myeloid leukemia and myelodysplastic syndrome, reflecting a strategic shift in its operations. The company reported a net loss of $8.6 million for the second quarter of 2025, with decreased research and development expenses due to restructuring activities.

The most recent analyst rating on (LVTX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on LAVA Therapeutics stock, see the LVTX Stock Forecast page.

LAVA Therapeutics Agrees to Acquisition by XOMA

On August 3, 2025, LAVA Therapeutics entered into a share purchase agreement with XOMA Royalty Corporation, whereby XOMA will acquire all of LAVA’s outstanding shares through a tender offer. The acquisition, valued between $1.16 and $1.24 per share, includes a contingent value right for potential future payments. LAVA’s Board has endorsed the transaction, considering it beneficial for shareholders and stakeholders. Following the acquisition, LAVA will undergo a corporate reorganization, resulting in it no longer being publicly traded, and its shares will be delisted from Nasdaq. The transaction is expected to close in the fourth quarter of 2025, and LAVA plans to discontinue its Phase 1 clinical trial of LAVA-1266.

The most recent analyst rating on (LVTX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on LAVA Therapeutics stock, see the LVTX Stock Forecast page.

LAVA Therapeutics Shareholders Approve Key Proposals in Meeting

On June 11, 2025, LAVA Therapeutics N.V. held its annual general meeting of shareholders, where approximately 62.1% of the company’s common shares were represented. During the meeting, shareholders approved all proposals, including the adoption of the 2024 annual accounts, the appointment of KPMG as external auditor for 2025, the release of board members from liability for 2024, and the reappointment of Jay Backstrom and James Noble as non-executive directors. These approvals reflect shareholder confidence in the company’s governance and strategic direction.

The most recent analyst rating on (LVTX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on LAVA Therapeutics stock, see the LVTX Stock Forecast page.