LAVA Therapeutics N.V. (LVTX): Business Model Canvas [Dec-2025 Updated]

You're looking at LAVA Therapeutics N.V. after its November 2025 acquisition by XOMA Royalty, and frankly, the business model has simplified into a pure asset-holding structure, which is a major shift from its R&D days. As an analyst, I see the core value now entirely resting on the Contingent Value Right (CVR) that legacy shareholders received alongside a final cash payment of $1.04 per share, which is the concrete outcome of the deal that was initially pitched in the $1.16 to $1.24 range. Before the final transition, the company was winding down operations, having spent $8.9 million on R&D and $6.0 million on G&A through the first half of 2025, leaving behind a cash balance of $56.2 million as of June 30, 2025, to manage the remaining obligations tied to the Gammabody® platform assets. Below, we map out exactly how this new entity is structured to capture future value from those partnered programs with Johnson & Johnson and Pfizer.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that defined LAVA Therapeutics N.V.'s value proposition right up to its acquisition. Honestly, the partnership structure was the primary driver of its late-stage valuation, especially given the cash burn from clinical development. The most significant partnership, effective late 2025, is the new parent entity relationship.

XOMA Royalty Corporation (Acquirer and new parent entity)

The relationship with XOMA Royalty Corporation became the defining partnership of late 2025, as XOMA Royalty completed the acquisition of LAVA Therapeutics on November 21, 2025. This transaction was initially valued at $30.19 million. The consideration structure was complex, involving immediate cash and future contingent rights. LAVA shareholders received $1.16 in cash per share, plus up to an additional $0.08 per share in cash, totaling a potential cash amount between $1.16 and $1.24 per share. At closing, shareholders received $1.04 in cash per Share plus a non-transferable Contingent Value Right (CVR). This CVR is key; it represents the right to receive 75% of the net proceeds related to LAVA's two partnered assets and 75% of any net proceeds from out-licensing or sale of unpartnered programs. This structure effectively monetized the future value of the pipeline assets that XOMA Royalty was acquiring rights to.

Johnson & Johnson (J&J) for JNJ-89853413 program

The collaboration with Johnson & Johnson centers on the bispecific gamma delta T cell engager, JNJ-89853413, which targets CD33 and gamma delta T cells. This asset was in a Phase 1 Trial (NCT06618001) as of mid-2025. The trial is enrolling patients in key geographies, specifically Canada and Spain. While LAVA discontinued its internal LAVA-1266 program in August 2025, the J&J partnership continued. Financially, LAVA recognized a $5.0 million milestone payment from Johnson and Johnson in Q4 2024, tied to the Investigational New Drug (IND) filing for JNJ-89853413.

Pfizer, Inc. for PF-08046052 program

LAVA's exclusive license agreement with Pfizer (following Pfizer's acquisition of Seagen) for the EGFRd2 asset, PF-08046052, provided significant non-dilutive funding. The initial deal in October 2022 included a $50 million nonrefundable upfront payment. LAVA continued to receive value from this partnership; a clinical development milestone of $7 million was received from Pfizer in Q1 2024. As of early 2025, Pfizer was enrolling patients in a Phase 1 open-label, multi-center study in the U.S. and UK, intending to evaluate PF-08046052 in approximately 275 subjects with metastatic, non-resectable solid tumor cancers.

Here's a quick look at the hard numbers associated with these major external relationships:

Clinical research organizations (CROs) for ongoing partnered trials

The execution of the Phase 1 trials for both JNJ-89853413 and PF-08046052 necessarily involved partnerships with CROs to manage the multi-center logistics. While specific contract values aren't public, the operational scope is defined by the trial parameters. The J&J trial is a multi-center study, and the Pfizer trial is also described as multi-center. These organizations handle the day-to-day management of the clinical sites for the partners.

Academic and clinical institutions for trial site execution

Trial site execution relies on established relationships with hospitals and research centers. For JNJ-89853413, sites are active in Canada and Spain. For PF-08046052, sites are active in the U.S. and UK. These institutions provide the necessary patient access and clinical expertise to conduct the dose escalation and expansion segments of the Phase 1 studies. The LAVA-1266 internal program, which was discontinued in August 2025, had sites in Australia and Spain.

Finance: review the CVR terms against the expected Q4 2025 cash forecast by next Tuesday.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Key Activities

You're managing a company in a major transition, so the key activities shift from pure R&D to complex corporate integration and asset management. Here's the breakdown of what LAVA Therapeutics N.V. was focused on as of late 2025, post-acquisition agreement.

Managing the transition and integration into XOMA's structure

The primary activity was executing the definitive share purchase agreement with XOMA Royalty Corporation, which officially closed on November 21, 2025. This required managing the tender offer process, which saw 23,956,708 Shares validly tendered by the Final Expiration Date of November 20, 2025, representing approximately 91.1% of the outstanding Shares. The consideration involved an initial cash payment of $1.04 per Share, a reduction from the initial range of $1.16 to $1.24 per share, plus the Contingent Value Right (CVR). A key operational step involved satisfying the Minimum Condition, which was met by the tendered shares, and managing the subsequent offering period that expired on November 20, 2025. Post-closing, LAVA Therapeutics N.V. intended to promptly delist its Shares from Nasdaq and terminate its reporting obligations under the Exchange Act by filing a Form 15 on or about December 1, 2025.

Overseeing partnered Phase 1 clinical trials (JNJ-89853413, PF-08046052)

Even under the acquisition agreement, supporting the partnered programs remained a critical activity, as the CVR structure is directly tied to their future economics. The CVR grants holders the right to receive 75% of any net proceeds related to these two assets. The level of activity supporting these programs is reflected in the R&D spend; Research and development expenses for the quarter ended June 30, 2025, were $4.7 million.

You need to track the status of these two key assets:

The Pfizer-partnered asset generated zero revenue from contracts with customers for the quarter ended June 30, 2025.

Maintaining and protecting the Gammabody® platform intellectual property (IP)

The Gammabody® platform is the core technology, and maintaining its IP was essential, especially given the CVR terms covering proceeds from any out-license or sale of unpartnered programs. The company stated it was the only one developing bispecific gamma delta T cell engaging antibodies for cancer treatment based on this platform. The transition to a U.S. domestic filer status starting January 1, 2025, meant increased compliance costs related to financial reporting under U.S. GAAP and U.S. federal proxy rules, which impacts the administrative overhead of IP protection and compliance.

Wind-down of internal programs (LAVA-1266) and Netherlands operations

Internal program management involved a decisive wind-down. On August 4, 2025, LAVA announced the discontinuation of the Phase 1 clinical trial for LAVA-1266, targeting CD123+ cancers, and initiated its wind-down. This program was the company's only wholly-owned clinical asset after LAVA-1207 was discontinued late in the prior year. The LAVA-1266 study was enrolling patients in the 300 µg dose level.

The operational restructuring also included closing the Netherlands base. In May 2025, the Board approved a plan that included the closure of Netherlands operations. This involved incurring approximately $0.9 million in lease termination expenses during the three months ending June 30, 2025, partially offset by $0.3 million in asset sale proceeds. Furthermore, the company secured a $5.2 million repayment waiver from the Netherlands Enterprise Agency as part of this restructuring. This restructuring followed a workforce reduction of approximately 30%, with estimated one-time costs of $0.5 million related to the reduction, mostly incurred in Q1 2025.

Financial reporting and compliance for the CVR assets

Financial reporting activities were dominated by the acquisition terms and CVR structure. The CVR itself has a potential payout of up to approximately $0.23 per CVR, contingent on the final determination of certain potential liabilities after closing. The minimum net-cash closing condition for the transaction was set at $24.5 million in the October amendment. The company's cash position was a key metric; as of June 30, 2025, LAVA reported cash, cash equivalents, and short-term investments of $56.2 million, down from $76.6 million at December 31, 2024. The company previously believed its cash balance of $66.6 million as of March 31, 2025, would fund operations into 2027.

Key financial metrics leading up to the closing:

• Net loss for the quarter ended June 30, 2025: $8.6 million, or $0.32 net loss per share.
• Net loss for the six months ended June 30, 2025: $12.1 million, or $0.45 net loss per share.
• Revenue from contracts with customers for the six months ended June 30, 2025: zero.

The company also had to manage the transition to U.S. domestic filer status effective January 1, 2025, which involved expected increased costs for U.S. GAAP financial statement preparation.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Key Resources

You're looking at the core assets LAVA Therapeutics N.V. holds as of late 2025, post-restructuring and ahead of the announced acquisition by XOMA Royalty Corporation. These resources are what underpin their remaining value proposition.

Proprietary Gammabody® bispecific T cell engager platform

The foundational resource is the Gammabody® platform itself. This technology creates bispecific antibodies designed to selectively kill cancer cells by engaging the patient's Vγ9Vδ2 (Vgamma9 Vdelta2) T cells against tumor-associated antigens. This platform is the engine behind their clinical assets.

Clinical-stage partnered assets (JNJ-89853413, PF-08046052)

The current clinical value is heavily weighted on the two remaining, actively partnered assets. Here's a quick breakdown of the Phase 1 programs:

The internal LAVA-1266 program, targeting CD123+ cancers, was discontinued, and its wind-down was initiated in 2025, shifting the focus almost entirely to managing these partnerships.

Remaining cash and short-term investments of $56.2 million (as of June 30, 2025)

Financially, the runway is defined by the balance sheet. As of June 30, 2025, LAVA Therapeutics N.V. reported cash, cash equivalents, and short-term investments totaling $56.2 million. This compares to $76.6 million at the end of 2024.

Patents and trade secrets covering the bispecific antibody technology.

Intellectual property protection is a core resource. This includes patents and trade secrets specifically covering the engineering and application of the Gammabody® bispecific antibody technology. The platform's unique approach to engaging Vγ9Vδ2 T cells is protected by this IP estate.

Reduced, specialized R&D and G&A team for asset management.

Following a restructuring plan adopted in February 2025, the operational team structure was significantly altered to align resources with the strategic focus on partnership support and the discontinued LAVA-1266 program wind-down. This involved a reduction of approximately 30% of the Company's global workforce.

The remaining team structure is specialized, focusing on managing the existing clinical-stage programs and the ongoing strategic review process, which culminated in the announced acquisition agreement in August 2025. Research and development expenses for the quarter ended June 30, 2025, were $4.7 million.

You should review the projected cash burn rate against the $56.2 million on hand to confirm the duration of the post-acquisition-announcement operating period. Finance: draft 13-week cash view by Friday.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Value Propositions

You're looking at the value proposition structure for LAVA Therapeutics N.V. after the XOMA Royalty Corp. acquisition closed in late 2025. The core value shifted from pure operational development to monetizing platform success through structured financial instruments tied to existing partnerships.

Monetization of the Gammabody® platform via the XOMA acquisition and CVR

The primary value capture mechanism became the acquisition by XOMA Royalty Corp., which finalized on November 21, 2025. LAVA Therapeutics N.V. shareholders received a specific consideration package designed to capture near-term cash while retaining upside potential.

The consideration per common share included:

• An initial cash amount of $1.04 per Share.
• A non-transferable Contingent Value Right (CVR) per Share.

This structure followed an amendment on October 17, 2025, which adjusted the cash component from an initial range of $1.16 and $1.24 per share. The total deal was initially valued at $30.19 million.

For context on LAVA Therapeutics' pre-acquisition financial standing, cash, cash equivalents, and short-term investments stood at $56.2 million as of June 30, 2025.

Providing XOMA with royalty rights to clinical-stage oncology assets.

The value proposition to XOMA Royalty was securing the economic rights to LAVA's pipeline, specifically the two partnered assets, which are now the basis for the CVR payments to legacy LAVA shareholders. LAVA Therapeutics historically focused on its Gammabody® platform for bispecific gamma delta T cell engagers.

The key assets underpinning this value include:

Contingent value for legacy shareholders tied to partnered asset success.

The CVR is the mechanism that ties legacy shareholder value directly to the future success of the Gammabody® assets now held by XOMA Royalty. The CVR provides specific payout rights based on net proceeds.

The CVR terms dictate the right to receive:

• 75% of any net proceeds related to LAVA's two partnered assets.
• 75% of any net proceeds from any out license or sale of LAVA's unpartnered programs.
• A potential additional payment of up to approximately $0.23 per CVR based on the final determination of certain potential liabilities post-closing.

This structure was designed to maximize shareholder value while allowing participation in the sustained success of the business.

Potential for a new class of cancer therapy using V$\gamma$9V$\delta$2 T cells

The underlying scientific value proposition remains the Gammabody® platform, which engineers bispecific gamma delta T-cell engagers. This technology aims to harness V$\gamma$9V$\delta$2 T cells for cancer treatment.

Targeted tumor killing with potential for minimized off-target toxicity

The platform's value is rooted in its therapeutic design, which focuses on specific targets to achieve tumor killing while aiming to minimize toxicity. The internal asset, LAVA-1266, was designed to target CD123+ tumor cells for hematological malignancies like Acute Myeloid Leukemia (AML) and Myelodysplastic Syndrome (MDS). The Phase 1 study for LAVA-1266 was enrolling patients in the 300 µg dose level in the dose escalation segment, evaluating up to 50 adults with CD123+ relapsed/refractory AML or intermediate, high or extremely high risk MDS. Note that LAVA-1266 development was discontinued post-announcement, with wind-down initiated.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Customer Relationships

You're looking at the relationships LAVA Therapeutics N.V. (LVTX) maintained right up to its acquisition by XOMA Royalty Corporation in late 2025. Since the company was clinical-stage and heavily reliant on external funding and partnerships, its 'customers' were not patients or physicians, but rather corporate entities and shareholders. The relationship structure shifted dramatically upon the closing of the acquisition on November 21, 2025.

Direct, transactional relationship with XOMA Royalty Corporation (Acquirer)

The final, definitive relationship with XOMA Royalty Corporation became purely transactional upon the closing of the tender offer. This was the ultimate relationship for LAVA Therapeutics N.V. shareholders. The initial deal announced on August 4, 2025, valued the acquisition at $30.19 million. However, the terms were amended, resulting in a final consideration structure that you need to track closely.

Here's the quick math on the final consideration paid to legacy LAVA Therapeutics shareholders:

This relationship is now about the administration and payout of the CVR, which is a long-term, performance-based transaction for the former LAVA Therapeutics shareholders.

Formal, contractual relationship management with J&J and Pfizer

Before the acquisition, the core of LAVA Therapeutics' business relationship structure involved managing two key strategic alliances. These relationships are now the direct economic drivers behind the CVR component of the XOMA Royalty deal. The management focus here was on hitting specific, pre-defined clinical and development targets to trigger milestone payments.

The historical performance of these relationships, which directly impacts the CVR value, is clear:

• Pfizer milestone payment received: $7.0 million in Q1 2024.
• Johnson & Johnson (J&J) development milestone received: $5.0 million in Q4 2024.
• Pfizer's PF08046052 program was in a Phase 1 study enrolling approximately 275 subjects in the U.S. and UK as of early 2025.
• J&J's JNJ-89853413 program was in a Phase 1 study enrolling approximately 100 adults in Canada and Spain.

The relationship management shifted from LAVA Therapeutics to XOMA Royalty upon closing, but the contractual obligations and potential future payments remain the same for J&J and Pfizer as the ultimate developers.

Investor relations focused on the CVR value for legacy shareholders

Investor relations, especially in the period between the March 2025 strategic review and the November 2025 closing, centered entirely on justifying the acquisition structure and managing expectations around the CVR. The company had to manage the narrative around its cash position and the value of its pipeline assets, particularly after discontinuing the LAVA-1266 program in August 2025.

Key financial data points used to frame investor discussions included:

• Cash, cash equivalents, and short-term investments as of December 31, 2024: $76.6 million.
• Cash position as of June 30, 2025: $56.2 million.
• The restructuring plan initiated in February 2025 included a workforce reduction of approximately 30%.
• The company believed its cash position was sufficient to fund operations into 2027.

The ultimate goal of investor relations became ensuring enough shareholders tendered their shares-the closing required tendering of at least 91.1% of outstanding shares by the Final Expiration Date.

Limited direct patient/physician relationship due to clinical-stage and partnered focus

As a clinical-stage company, LAVA Therapeutics N.V. did not have established commercial customer relationships with physicians or patients. All direct interaction with the clinical environment was channeled through its partners or was limited to the conduct of its own trials, which were then being wound down or transitioned.

The focus on partnered assets meant that the primary 'customer' interaction was with the development teams at J&J and Pfizer. For instance, the LAVA-1266 Phase 1 trial was designed to evaluate the drug in up to 50 adults with relapsed/refractory AML or myelodysplastic syndrome (MDS). Following the August 2025 announcement, the wind-down of this program meant this direct clinical relationship ceased or was significantly curtailed.

Finance: draft CVR payment tracking schedule by January 15, 2026.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Channels

The Channels component of LAVA Therapeutics N.V.'s business model, particularly as of late 2025, is overwhelmingly defined by the acquisition by XOMA Royalty Corporation, which shifts the primary distribution and communication channel from direct clinical operations to a post-acquisition rights management structure.

The direct channel for shareholder communication transitioned through mandatory SEC filings related to the tender offer and subsequent corporate reorganization.

• Form 8-K filed August 13, 2025, announcing the definitive Share Purchase Agreement with XOMA Royalty Corporation.
• Schedule TO commenced on August 15, 2025, detailing the tender offer.
• Schedule 14D-9 filed by LAVA Therapeutics N.V. recommending shareholders accept the Offer.
• Amendment to Purchase Agreement filed October 17, 2025, extending the Offer expiration to November 12, 2025.
• Final Expiration Date for the tender offer was November 20, 2025, with 91.1% of Shares validly tendered.
• Acquisition consummated on November 21, 2025, followed by intent to delist from Nasdaq.

The execution channel for partnered programs is now managed under the CVR (Contingent Value Right) structure, which dictates the flow of future financial upside.

The structure of the CVR, a key channel for realizing value from prior R&D, is detailed below:

The clinical trial execution channel, while historically a primary channel for data generation, saw significant wind-down activity in 2025, impacting the LAVA-1266 program specifically.

• LAVA-1266 Phase 1 study was conducted in Australia as of January 10, 2025.
• The Pfizer partnered program (PF-08046052) Phase 1 trial was underway in the U.S. and UK.
• Development of LAVA-1266 was discontinued on August 4, 2025, initiating a program wind-down.

Revenue realization channels from existing collaborations, prior to the acquisition, generated specific milestone payments:

• $7.0 million milestone received from Pfizer in Q1 2024.
• $5.0 million development milestone received from J&J in Q4 2024 related to IND filing for JNJ-89853413.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Customer Segments

You're looking at the customer segments for LAVA Therapeutics N.V. right after the acquisition closed in late November 2025. The primary relationship has fundamentally shifted from serving external partners to satisfying the new owner and the rights holders from the transaction.

XOMA Royalty Corporation (Primary customer/owner of the future royalty stream)

XOMA Royalty Corporation became the sole owner following the successful tender offer and subsequent corporate reorganization, which was finalized on November 21, 2025. This entity is now the direct beneficiary of the underlying assets, making them the ultimate customer for the value generated by the former LAVA programs.

The transaction saw 23,956,708 Shares validly tendered, representing approximately 91.1% of the total outstanding Shares, by the Final Expiration Date of November 20, 2025. The minimum net-cash closing condition was amended to $24.5 million. The cash component paid to tendering shareholders was $1.04 per Share.

Large Pharmaceutical Companies (J&J, Pfizer) for co-development and licensing

Johnson & Johnson (J&J) and Pfizer remain critical entities because they hold the rights to LAVA's key partnered assets, which now feed the CVR stream for former LAVA shareholders. These companies are the direct customers for the licensed assets, driving the potential future value.

The Pfizer collaboration, initiated in September 2022, involved an upfront payment of $50.0 million received in October 2022. This program could yield up to approximately $650.0 million in potential development, regulatory, and commercial milestones. Pfizer also pays royalties ranging from high single-digit to mid-teen percentages on future sales. A clinical development milestone payment of $7.0 million was received from Pfizer in Q1 2024. For the six months ended June 30, 2024, revenue recognized from Pfizer was $7.0 million.

The Johnson & Johnson partnered program (JNJ-89853413) resulted in a development milestone payment of $5.0 million received in Q4 2024.

Financial performance related to these contracts shows a stark contrast pre-acquisition:

As of June 30, 2025, LAVA Therapeutics N.V. reported cash, cash equivalents, and short-term investments of $56.2 million. This was down from $76.6 million as of December 31, 2024.

Legacy LAVA Shareholders (recipients of the CVR)

These shareholders, who did not tender or were part of the remaining shares after the subsequent offering period, are now holders of a non-transferable Contingent Value Right (CVR). The CVR represents the right to receive certain future cash payments, which is a key component of their relationship with the acquiring entity.

The CVR terms entitle holders to:

• 75% of the net proceeds related to LAVA's two partnered assets.
• 75% of any net proceeds from any out-license or sale of LAVA's unpartnered programs.
• A new right to receive up to approximately $0.23 per CVR based on the final determination of certain potential liabilities.

The initial cash offer was $1.16 per share, plus an additional amount of up to $0.08 per share, totaling a range of $1.16 to $1.24 per share initially. This was later amended to a finalized cash amount of $1.04 per share.

Oncology Key Opinion Leaders and Clinical Investigators

While not direct paying customers in the traditional sense, the investigators and Key Opinion Leaders (KOLs) are essential customers for the clinical trial infrastructure, as their participation validates the science. The business model relied on their engagement to advance assets like LAVA-1266.

The LAVA-1266 Phase 1 study was designed to evaluate the drug in up to 50 adults with CD123+ relapsed/refractory AML or intermediate, high or extremely high risk MDS. The JNJ-89853413 Phase 1 trial was designed to evaluate the drug in approximately 100 adults with relapsed/refractory (R/R) AML or R/R higher risk of MDS. The PF-08046052 Phase 1 study intended to evaluate the therapy in approximately 275 subjects.

The company implemented a restructuring plan that included a reduction of approximately 30% of the global workforce to align resources. The cash position as of March 31, 2025, was $66.6 million, which the company believed was sufficient to fund operations into 2027.

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Cost Structure

You're looking at the cost structure for LAVA Therapeutics N.V. as the company moved toward its acquisition by XOMA Royalty Corporation in late 2025. The cost base was clearly being managed down through strategic shifts.

The most significant driver of cost change was the discontinuation of programs, which directly impacted Research and Development (R&D). This strategic pivot led to significantly reduced Research and Development (R&D) expenses.

For the first half of 2025, the R&D spend reflected this reduction:

• R&D expenses for the six months ended June 30, 2025, totaled $8.9 million.
• This compares to R&D expenses of $11.6 million for the same period in 2024.
• For the quarter ended June 30, 2025, R&D was $4.7 million, down from $6.0 million in the prior year's quarter.

General and Administrative (G&A) expenses also saw a reduction as part of the streamlining efforts, though this was partially offset by transaction-related costs. Here are the figures for the first half of 2025:

The cost structure included specific, non-recurring charges related to the major corporate actions taken in 2025. You see the impact of the restructuring plan, which was adopted in February 2025 to reduce costs and extend the cash runway.

• Restructuring costs associated with the workforce reduction and the closure of Netherlands operations were a key component.
• The company recorded $3.2 million of restructuring and impairment charges year-to-date as of June 30, 2025.
• The Board approved the elimination of remaining Netherlands employees by July 31, 2025, with expected expenses related to this specific Netherlands Closure restructuring estimated at approximately $2.0 million during the year ending December 31, 2025.

Finally, the pursuit of the XOMA acquisition and the subsequent delisting introduced specific professional service costs. While a total dollar amount for all related fees isn't explicitly broken out in the required format, the financial filings noted an increase in certain administrative costs:

The decrease in G&A expenses was partially offset by increased professional and consultant fees related to the Company's transition to US GAAP reporting, which is definitely a cost associated with the M&A activity and the move toward becoming a private entity under XOMA Royalty Corporation. Legal advisors for LAVA Therapeutics in the transaction included Cooley LLP and NautaDutilh N.V..

LAVA Therapeutics N.V. (LVTX) - Canvas Business Model: Revenue Streams

You're looking at the revenue picture for LAVA Therapeutics N.V. (LVTX) as of late 2025, which is dominated by the recent acquisition by XOMA Royalty Corporation. Honestly, for a clinical-stage company, the revenue streams shift entirely from potential drug development milestones to the realized value of the sale itself. Here's the quick math on what drives the current financial recognition for former LVTX shareholders and the company's final operational income before full integration.

The primary financial event driving revenue recognition for LAVA Therapeutics shareholders was the closing of the acquisition by XOMA Royalty Corporation on November 21, 2025. This transaction consolidated the company's assets and future potential into a defined cash payment plus a contingent right.

For the period leading up to the acquisition close, LAVA Therapeutics' operational revenue from its core business was effectively nil, reflecting the company's transition phase and focus on the strategic review process. This is a key point for understanding the pre-close financial health.

• Revenue from contracts with customers was zero for the quarter ended June 30, 2025.
• Revenue from contracts with customers was zero for the six months ended June 30, 2025.

Still, the company generated some minor income from its treasury management activities, which is typical for a company holding significant cash reserves. As of March 31, 2025, LAVA Therapeutics held cash, cash equivalents, and short-term investments of $66.6 million, which was down from $76.6 million at the end of 2024.

You can see the interest income stream in the first half of 2025:

• Interest income for the first quarter ended March 31, 2025, was $713 thousand.
• Interest income for the second quarter ended June 30, 2025, was $607 thousand.
• Total interest income for the six months ended June 30, 2025, totaled $1,320 thousand (or $1.32 million).

Beyond the acquisition proceeds, the CVR structure is designed to capture the value of the previously established collaborations with major pharmaceutical partners. These represent contingent, non-guaranteed revenue streams tied to future clinical and commercial success, which now flow through the CVR mechanism to former LVTX shareholders.

Here are the details on the potential future milestone payments that underpin the CVR value:

• Johnson & Johnson (J&J) Agreement: LAVA was eligible to receive up to an aggregate of $195 million upon achievement of certain development and commercial milestones, plus tiered royalties. A $5.0 million development milestone was received in October 2024.
• Pfizer Agreement: LAVA was eligible to receive milestones of up to approximately $650 million upon achievement of development, regulatory, and commercial milestones, as well as royalties. A $7.0 million clinical development milestone payment was received in March 2024.

Finance: draft 13-week cash view by Friday.