Royalty Market Accelerates with XOMA Biotech Acquisitions and OrbiMed’s Major Fundraise

XOMA Royalty has accelerated its aggregation of biotech royalty assets in 2025, acquiring Turnstone Biologics in June, followed by deals for HilleVax and LAVA Therapeutics in August134.

The LAVA Therapeutics acquisition offers shareholders $1.16–$1.24 per share plus a contingent value right tied to future proceeds from partnered assets; the deal aims to close in Q4 2025, pending at least 80% of shares tendered4.

Earlier in 2025, XOMA completed a $30 million royalty buyout from BioInvent for the monoclonal antibody mezagitamab, which is in Phase 3 development for immune thrombocytopenia and licensed to Takeda1.

XOMA’s business model is to give biotechs cash upfront in exchange for long-term royalty and milestone rights, expanding its income sources as smaller biotechs seek capital3.

OrbiMed has closed its fifth Royalty and Credit Opportunities Fund at $1.86 billion despite challenging biotech equity markets, primarily from established institutional investors (medical, endowments, pensions, sovereign funds)2.

OrbiMed’s fund delivers non-dilutive credit and royalty-based financing to a variety of healthcare companies, positioning it as a key facilitator of capital for biopharma and medical innovation amid tough market conditions2.

Sources:

1. https://www.labiotech.eu/trends-news/xoma-royalty-acquires-turnstone-biologics-royalty-deals-biopharma/

2. https://www.fiercebiotech.com/biotech/orbimed-gathers-18b-latest-fund-despite-challenging-biotech-equity-market

3. https://www.fiercebiotech.com/biotech/xoma-goes-shopping-struggling-biotechs-picking-hillevax-and-lava

4. https://www.quiverquant.com/news/XOMA+Royalty+Corporation+Enters+Definitive+Share+Purchase+Agreement+to+Acquire+LAVA+Therapeutics+N.V.