Xoma Royalty Corp. has agreed to buy Mural Oncology, a biotech company focused on cancer treatments, for $2.035 per share. If Mural has more than $36.2 million in cash when the deal closes, shareholders could receive an extra $0.205 per share. This deal values Mural at about $1.80 per share, which is a 13% premium over its stock price before the announcement. After the purchase, Xoma plans to close down Mural’s operations. This follows a trend where some companies buy struggling biotech firms, shut them down, and return the cash to investors. Mural was spun off from Alkermes in 2023 to develop cancer drugs, including nemvaleukin, which failed in key studies. After these setbacks, Mural laid off most of its staff and began looking for a buyer. Xoma, which specializes in acquiring drug royalties, has recently bought several other struggling biotech companies, including Turnstone Biologics, Lava Therapeutics, and HilleVax. These companies also faced financial troubles after their drugs failed in trials. Xoma’s CEO, Caroline Loew, stated that this deal is the best way to return value to shareholders quickly. This acquisition is part of a growing trend where investors push biotech companies to return cash instead of trying to revive failing projects.