Kinnate Biopharma agrees to merger with XOMA, boosting shareholder value and advancing cancer research

Kinnate Biopharma Inc. (Nasdaq: KNTE), a leading clinical-stage precision oncology company, has announced a definitive merger agreement with XOMA Corporation, setting the stage for a transformative leap in the field of cancer research and treatment. The merger, valued at a cash price per share of Kinnate common stock ranging between $2.3352 and $2.5879, comprises a base cash price and an additional amount per share, plus a non-transferable contingent value right representing potential future proceeds from Kinnate’s investigational pan-RAF inhibitor, exarafenib, among other assets.

Following an exhaustive review by a special committee of Kinnate’s Board of Directors, supported by independent legal and financial advisors, the board unanimously approved the acquisition, deeming it in the best interest of Kinnate shareholders. This decision underscores the strategic alignment and shared vision of Kinnate and XOMA in advancing the frontier of precision oncology.

Under the terms of the merger agreement, a subsidiary of XOMA will initiate a tender offer by March 4, 2024, to purchase all outstanding shares of Kinnate common stock. The transaction, subject to specific conditions including the tender of a majority of Kinnate shares and the availability of at least $120 million net cash at closing, is anticipated to finalize in the first half of 2024. Notably, key Kinnate stakeholders representing around 46% of its common stock have already pledged their support for the merger.

Advising Kinnate in this strategic move are Leerink Partners and Wilson Sonsini Goodrich & Rosati, with Lazard also providing financial counsel. This merger is not just a business transaction but a beacon of hope for individuals battling cancer, signifying a concerted effort to overcome the limitations of current cancer therapies through innovative targeted treatments.

Kinnate Biopharma’s dedication to addressing unmet medical needs in oncology, particularly through its lead product candidates like the pan-RAF inhibitor exarafenib and the FGFR inhibitor KIN-3248, highlights the potential impact of this merger on the development of novel cancer therapies.

The merger between Kinnate Biopharma Inc. and XOMA Corporation represents a pivotal moment in the precision oncology sector, promising to accelerate the development of targeted therapies for cancer patients. By combining resources, expertise, and innovative product candidates, this partnership is poised to address critical oncogenic drivers for which current treatments fall short. The focus on investigational therapies like exarafenib underscores the commitment to pioneering research that could significantly improve outcomes for patients with BRAF and NRAS-driven cancers, among others. This strategic merger not only enhances shareholder value but also reinforces the global fight against cancer through advanced therapeutic options.