Xoma Royalty has acquired HilleVax and Lava Therapeutics, two biotechs that recently suffered clinical trial failures and workforce reductions. HilleVax’s norovirus vaccine failed phase 2b efficacy endpoints, while Lava’s prostate cancer bispecific failed phase 1, leading both companies to downsize and rethink strategies. Xoma’s purchase prices reflect discounted valuations with contingent rights tied to future milestones. The acquisitions represent consolidation efforts amid challenging clinical and funding environments, aiming to harness any residual pipeline value.