**XOMA Royalty Corporation (XOMA) experienced a significant share price increase of 10.7%, closing at $41.97 following the announcement of a definitive agreement with Ligand Pharmaceuticals. Ligand will acquire XOMA for $39.00 per share in cash, representing a total equity value of approximately $739 million, and a 14% premium over XOMA’s recent trading average.**
**The acquisition is expected to close soon, bringing with it a contingent value right (CVR) for shareholders, linked to potential litigation proceeds. In terms of earnings, XOMA is projected to report $0.19 per share, which is a 216.7% year-over-year increase. However, revenue is anticipated to decline by 7.9% to $14.66 million compared to the previous year. Despite this, consensus estimates for earnings have dropped by 46.3% in the last month.**
**For context, XOMA currently holds a Zacks Rank of #3 (Hold).**
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