Obsidian Therapeutics has completed its previously announced transaction with Galera Therapeutics and closed an oversubscribed $350 million private placement.
The combined company will operate as Obsidian Therapeutics, and its shares are expected to trade on Nasdaq under the ticker symbol OBX.
New investors in the private placement included Balyasny Asset Management, Caligan Partners, Eventide Asset Management, Nantahala Capital, Octagon Capital, Redmile, Spruce Street Capital and Trails Edge Capital Partners.
Existing Obsidian investors participating in the financing included Atlas Venture, Deep Track Capital, Foresite Capital, Janus Henderson Investors, Novo Holdings, RA Capital Management, RTW Investments, TCGX and Wellington Management.
Obsidian expects the combined company’s cash balance to fund operations into the second half of 2028.
The financing is expected to provide capital through several clinical milestones for OBX-115, including Phase 1 non-small cell lung cancer data expected during the first half of 2027 and topline data from a melanoma registration-enabling study expected by the end of 2027.
The combined company will also continue supporting Galera’s pipeline.
OBX-115 is an engineered tumor-infiltrating lymphocyte therapy designed using Obsidian’s cytoDRiVE protein-regulation platform.
The treatment incorporates pharmacologically regulated membrane-bound IL-15 and is intended to reduce the burden associated with conventional TIL therapy. Its potential treatment features include minimally invasive tumor tissue collection, low-dose lymphodepletion that may be compatible with outpatient administration and elimination of IL-2 from the regimen.
The FDA has granted OBX-115 Fast Track and Regenerative Medicine Advanced Therapy designations for unresectable or metastatic melanoma resistant to immune checkpoint inhibitors.
Before closing, Galera completed a one-for-200 reverse stock split and issued contingent value rights to eligible legacy shareholders.
Former Galera shareholders own approximately 1.2% of the combined company. Former Obsidian shareholders own approximately 51.6%, while investors in the private placement own approximately 47.2%.
Leerink Partners served as Obsidian’s exclusive financial adviser. Leerink, TD Cowen, Piper Sandler, William Blair and LifeSci Capital acted as placement agents for the private financing.
Goodwin Procter advised Obsidian, Sidley Austin advised Galera and Lucid Capital Markets provided a fairness opinion to Galera’s board.
KEY QUOTE:
“The completion of the merger with Galera and closing of our $350 million private placement mark a transformative milestone that propels Obsidian into its next stage of growth.”
Madan Jagasia, CEO of Obsidian Therapeutics
