Rallybio to acquire Candid Therapeutics

Core Viewpoint - US-based biotechnology company Rallybio has entered into a definitive agreement to acquire Candid Therapeutics through a merger transaction, with the combined entity to operate as Candid Therapeutics and list on Nasdaq under the "CDRX" ticker symbol [1] Group 1: Acquisition Details - The merger will provide Candid with over $505 million in gross proceeds from a concurrent private financing round, supported by institutional investors [2] - The transaction is expected to close by mid-2026, pending customary closing conditions, including shareholder approval and regulatory clearances [3] Group 2: Financial Projections - The combined company anticipates a pro-forma cash balance of approximately $700 million at closing, which is projected to fund operations through 2030 [4][2] - Existing equityholders of Rallybio will hold 3.65% of the new merged entity, while equityholders of Candid, including financing investors, are projected to own around 96.35% [4] Group 3: Strategic Focus - The capital raised will be utilized to advance Candid's T-cell engager (TCE) portfolio, including planned Phase II studies for cizutamig targeting B-cell maturation antigen (BCMA) in myasthenia gravis and interstitial lung disease [3] - Rallybio's CEO emphasized the transaction as a compelling opportunity for stockholders to engage in the future value creation of a well-capitalized, clinical-stage company with a diverse TCE drug candidate portfolio [5] Group 4: Market Position and Collaborations - Candid's clinical data in myasthenia gravis and its autoimmune pipeline, along with strong backing from leading healthcare investors, supports the transaction's merit [6] - In April 2024, Rallybio announced a collaboration with Johnson & Johnson to advance therapeutic solutions for fetal and neonatal alloimmune thrombocytopenia (FNAIT) [6]