Graybug Vision and CalciMedica have signed a definitive merger agreement to create a new clinical-stage biopharmaceutical company.
Expected to be funded using nearly $35m of cash and cash equivalents at closing, the combined company will focus on advancing CalciMedica’s pipeline of first-in-class product candidates.
The focus will be on developing Auxora, CalciMedica’s lead product candidate, for the treatment of life-threatening inflammatory diseases, such as acute pancreatitis (AP), acute kidney injury (AKI), asparaginase-associated pancreatitis (AAP), and acute hypoxemic respiratory failure (AHRF),
Auxora is an intravenous-formulated, small molecule calcium-release activated calcium (CRAC) channel inhibitor and modulates the immune response and protects against tissue cell injury.
The combined company plans the therapy development through several clinical trials.
CalciMedica CEO Rachel Leheny said: “This transaction will provide us with the financial strength to advance the development of our lead candidate, Auxora, in life-threatening inflammatory illnesses.
“We have multiple value-driving milestones expected over the next 12 months, including data from our Phase IIb CARPO clinical trial in patients with AP and a potential path to accelerated approval for Auxora in AAP.
“At CalciMedica, we are focused on delivering novel therapies that target CRAC channel inhibition to underserved patients with life-threatening inflammatory diseases for which no approved therapies exist.”
The combined company will be headquartered in La Jolla, California, US after the completion of the merger. Rachel Leheny will serve as CEO of this company.
In the combined company, Graybug equity holders and pre-merger equity holders of CalciMedica are expected to jointly own nearly 29% and 71%, respectively.
The boards of directors of both companies have unanimously approved the merger agreement, which is subject to other customary closing conditions and the approvals by each company’s stockholders.
The proposed merger is slated for completion in the first quarter of next year.