Rallybio Corporation and Candid Therapeutics have entered a definitive merger agreement under which Rallybio will acquire Candid in an all‑stock transaction. Following completion, the combined company is expected to operate as Candid Therapeutics, Inc. and trade on Nasdaq under the ticker symbol “CDRX.” Candid is a clinical‑stage biotechnology company developing T‑cell engager therapeutics for autoimmune and inflammatory diseases.
In conjunction with the merger, Candid has secured commitments for an oversubscribed and upsized private financing of more than 505 million dollars in gross proceeds from a syndicate of healthcare institutional investors and mutual funds. The companies expect the combined cash balance at closing to be approximately 700 million dollars, which they believe will fund operations through 2030 and support multiple clinical milestones. Planned activities include initiation and readouts of Phase 2 studies of cizutamig, a BCMA‑targeting T‑cell engager, in myasthenia gravis and interstitial lung disease secondary to rheumatologic diseases.
The transaction has been unanimously approved by both companies’ boards and is expected to close in mid‑2026, subject to shareholder approvals, SEC registration effectiveness, Hart‑Scott‑Rodino clearance and other customary conditions. Assuming Rallybio has 37.5 million dollars of net cash at closing, pre‑transaction Rallybio equityholders are expected to own about 3.65% of the combined company, with Candid equityholders, including new financing investors, holding about 96.35%. Rallybio stockholders will also receive contingent value rights tied to proceeds from the sale or disposition of certain legacy assets, including interests in REV102.
Subscribe to our e-Newsletters
Stay up to date with the latest news, articles, and events. Plus, get special offers
from American Pharmaceutical Review – all delivered right to your inbox!
Sign up now!