RallyBio is making its second attempt at a reverse merger, this time with oncology-focused Avenzo Therapeutics. The rare disease company had initially announced a merger with Candid Therapeutics before that firm was acquired by UCB.
Candid Therapeutics, an immune drug developer, was the target of RallyBio's first reverse merger plan. That deal was abandoned after UCB bought Candid, leaving RallyBio to seek a new partner. Avenzo brings a pipeline of cancer therapies, though specific drug candidates in the deal were not disclosed.
Financial terms of the merger between RallyBio and Avenzo were not immediately available. Reverse mergers allow privately held companies to go public by combining with an existing publicly traded shell, offering an alternative to a traditional IPO.
RallyBio, which went public in 2021 via a SPAC merger, has faced challenges advancing its rare disease programs. The company's stock has declined significantly since its debut, and the merger with Avenzo may provide a new strategic direction focused on oncology.
The deal is expected to close in the second half of this year, subject to approval from RallyBio shareholders and regulatory review. If completed, the combined company will operate under Avenzo's name and leadership, potentially shifting focus entirely away from rare diseases.