Rallybio Corporation (NASDAQ:RLYB) announced plans to acquire Candid Therapeutics through a merger agreement, with the combined entity set to operate under the name Candid Therapeutics and trade using the ticker symbol CDRX.
The transaction is accompanied by a concurrent private financing expected to generate more than $505 million in gross proceeds. 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, and other institutional investors, according to a company statement. The sizeable capital raise comes as Rallybio — currently valued at approximately $39.8 million — maintains a balance sheet with cash exceeding debt and liquid assets comfortably covering near-term liabilities.
Upon completion of the transaction, the combined company is expected to hold sufficient cash to fund operations through 2030. The proceeds will primarily support the development of Candid’s T-cell engager pipeline, including Phase 2 trials and clinical data readouts for cizutamig in myasthenia gravis and interstitial lung disease associated with rheumatologic conditions.
Candid Therapeutics focuses on developing T-cell engager therapies targeting autoimmune diseases. Its lead candidate, cizutamig, targets B-cell maturation antigen and has been administered to 87 patients to date, including 47 individuals with autoimmune disorders across multiple indications. Additional assets include CND261, a CD20-targeting T-cell engager evaluated in more than 100 patients, and CND319, a dual CD19/CD20 program expected to enter first-in-human studies in mid-2026.
Following closing, existing Rallybio shareholders are expected to own approximately 3.65% of the combined company, while current Candid shareholders will hold about 96.35%, assuming Rallybio reports net cash of $37.5 million at closing. Rallybio investors will also receive contingent value rights tied to a share of certain future cash proceeds from the previously announced sale of interests in REV102 and any potential monetization of other legacy Rallybio assets.
The boards of directors of both companies have approved the merger, which is anticipated to close in mid-2026, subject to shareholder approvals, regulatory clearances, and customary closing conditions. Although Rallybio remains unprofitable — reporting losses of $2.53 per share over the past twelve months — the deal represents a strategic repositioning for the company.
Separately, Rallybio recently reported positive Phase 1 trial results for RLYB116, a subcutaneous C5 inhibitor. The study tested 150 mg and 300 mg dose levels, with the higher dose achieving complete and sustained inhibition of terminal complement activity.
The company also implemented a one-for-eight reverse stock split effective February 6, 2026, a measure approved by shareholders to raise the per-share price and maintain compliance with Nasdaq’s listing requirements. Following the adjustment, Rallybio’s shares continue to trade on the NASDAQ Capital Market under the ticker RLYB, accompanied by a new CUSIP number. The company said these steps reflect ongoing efforts to advance its clinical pipeline while preserving its public market listing.