Shares of Vyne Therapeutics Inc (NASDAQ:VYNE) jumped 77.9% in premarket trading on Wednesday after the company unveiled a definitive agreement to merge with Yarrow Bioscience, a clinical-stage biotech focused on autoimmune disorders affecting the thyroid.
The proposed all-share transaction will result in a newly combined company operating under the Yarrow Bioscience name and trading on Nasdaq with the ticker symbol “YARW.” The deal is supported by roughly $200 million in financing commitments secured ahead of closing from a group of healthcare-focused investors led by RTW Investments, alongside participation from OrbiMed, Janus Henderson Investors and other backers.
Before the transaction is completed, Vyne plans to declare a special cash dividend for its existing shareholders, distributing surplus net cash estimated at between $14.5 million and $16.5 million. At closing, the merged entity is expected to have sufficient cash on hand to fund operations through 2028.
Post-merger, Yarrow intends to prioritize the development of YB-101, a potential first-in-class antibody targeting the thyroid-stimulating hormone receptor for the treatment of Graves’ disease and thyroid eye disease. The company expects to launch a U.S.-based Phase 1b/2b clinical trial in Graves’ disease patients in the first half of 2026, with initial Phase 1b results anticipated in the second half of 2027.
“Over the last several months, VYNE has evaluated a wide range of options to maximize stockholder value, including an assessment of our internal pipeline, financing opportunities and strategic alternatives,” said David Domzalski, President and Chief Executive Officer of VYNE. “We believe this merger provides our stockholders a compelling opportunity to realize both short- and long-term value creation through a cash dividend and the continued advancement of Yarrow’s potential breakthrough therapies for the treatment of thyroid autoimmune diseases.”