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news.Biotechnology company Q32 Bio has signed an agreement to merge with Homology Medicines, in an all-stock transaction.
The combined company aims to advance Q32 Bio’s clinical development candidates to treat autoimmune and inflammatory diseases. Credit: CDC on Unsplash.
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Homology Medicines will issue shares of its common stock to Q32 Bio stockholders as part of the merger deal, in return for cancelling Q32 Bio’s capital stock.
Pre-merger Homology Medicines stockholders are anticipated to own around 25% of the combined company, with the remaining 75% stake expected to be held by pre-merger Q32 Bio stockholders.
After the merger, Q32 Bio will become a fully owned subsidiary of Homology Medicines. The combined company will run as Q32 Bio, based in Waltham, Massachusetts.
To support the merger agreement, Q32 Bio has signed an agreement for a $42m private placement with existing and new investors participation.
The combined company aims to advance Q32 Bio’s wholly-owned clinical development candidates to treat autoimmune and inflammatory diseases.
The capital raised from the planned transactions will fund the ongoing clinical development of Q32 Bio’s two main assets, bempikibart (ADX-914) and ADX-097.
Q32 Bio announced the regaining of all rights to bempikibart from Amgen.
Bempikibart is a fully human anti-IL-7Rα antibody designed to re-regulate adaptive immune function by blocking signalling mediated by both IL-7 and TSLP.
ADX-097 is built on a new platform that allows tissue-targeted regulation of the complement system without the need for long-term systemic blockade.
Q32 Bio CEO Jodie Morrison said: “The proposed merger with Homology Medicines and concurrent private placement is expected to provide Q32 Bio with the capital to drive development of our autoimmune and inflammatory pipeline through multiple clinical milestones.”
Subject to customary closing conditions, including the transaction approval by the stockholders of each company, the deal is anticipated to be completed in the first quarter of next year.
