Rallybio Corporation announced a merger agreement with clinical-stage biotechnology company Candid Therapeutics, a deal that will create a combined company focused on developing T cell engager therapies for autoimmune diseases. Upon completion of the transaction, the combined company will operate as Candid Therapeutics and trade on Nasdaq under the ticker symbol CDRX.
Alongside the merger, Candid secured an oversubscribed private financing of more than $505 million from a syndicate of leading healthcare institutional investors and mutual funds. Participants in the financing include Venrock Healthcare Capital Partners, RA Capital Management, Janus Henderson Investors, accounts advised by T. Rowe Price Associates, venBio Partners, Viking Global Investors, Cormorant Asset Management, Foresite Capital, Soleus Capital, TCGX, Vivo Capital, and other institutional investors.
The companies expect the combined organization to have approximately $700 million in cash at closing, providing funding runway through 2030. The capital is intended to support the development of Candid’s pipeline of T cell engager programs, including multiple clinical milestones and Phase 2 trials.
Candid’s pipeline focuses on T cell engager therapeutics targeting B cells and plasma cells involved in autoimmune disease. Its lead program, cizutamig, is a bispecific antibody targeting B cell maturation antigen and CD3 to enable T cell-mediated destruction of disease-driving B cells. The drug has already been administered to 87 patients, including 47 with autoimmune diseases, and has demonstrated favorable tolerability with low rates of mild cytokine release syndrome. Phase 2 trials in myasthenia gravis and interstitial lung disease associated with rheumatological conditions are planned to begin in 2026.
Beyond cizutamig, Candid is advancing additional programs, including CND261, a CD20-targeted T cell engager that has been tested in more than 100 patients across oncology and autoimmune indications, and CND319, a dual targeting CD19 and CD20 therapy with promising preclinical results. First-in-human studies for CND319 are expected to begin in mid 2026. The company also has additional preclinical candidates, including a dual targeting BCMA and CD19 T cell engager.
The merger has been unanimously approved by the boards of both companies and is expected to close in mid 2026, pending customary conditions including shareholder approvals, regulatory clearances, and the effectiveness of a registration statement with the Securities and Exchange Commission.
Following completion of the transaction, pre-transaction Rallybio shareholders are expected to own approximately 3.65% of the combined company, while Candid shareholders and investors participating in the financing are expected to hold about 96.35%. Rallybio shareholders will also receive contingent value rights tied to potential proceeds from the previously announced sale of interests in the REV102 program and potential disposition of other legacy assets.
The combined company will be led by Dr. Ken Song, who currently serves as chairman, president and chief executive officer of Candid Therapeutics. Management said the transaction positions the company to accelerate the development of a new class of therapies for autoimmune disease.
KEY QUOTES:
“This transaction marks an exciting moment for Candid as we lead the development of TCEs for patients with autoimmune diseases. By combining with Rallybio and securing over $505 million in new financing from a distinguished group of healthcare investors, we have the resources to advance what we view as a transformative therapeutic modality. With Phase 2 studies planned for cizutamig in 2026 and a rich pipeline of next generation TCE programs, we will continue to push forward this new drug class.”
Dr. Ken Song, Chairman, President And Chief Executive Officer, Candid Therapeutics
“We are pleased to announce this transaction, which we believe represents a compelling opportunity for Rallybio stockholders to participate in the future value creation of a well capitalized, clinical stage company with a differentiated and broad portfolio of TCE drug candidates. Candid’s clinical data in myasthenia gravis and across its autoimmune pipeline, combined with the strong endorsement of leading healthcare investors further substantiates the merit of this transaction.”
Dr. Stephen Uden, Co-Founder And Chief Executive Officer, Rallybio Corporation
