Rallybio merges with Candid Therapeutics with USD 505m backing for TCEs

Edited by Robert McTiernan··2 min read

Rallybio Corporation has agreed to acquire Candid Therapeutics through an all-stock reverse merger that will create a Nasdaq-listed company operating under the Candid name and trading under the ticker CDRX. The transaction is accompanied by a USD 505 million private financing, positioning the combined company to advance a pipeline of T-cell engager (TCE) therapeutics targeting B-cell lineage antigens across more than ten autoimmune diseases.

Under the merger agreement, Candid shareholders will receive newly issued shares of Rallybio common stock, with the exchange ratio determined at closing based on relative company valuations. No cash consideration will be paid between the parties.

Following completion of the deal, Candid equityholders—including participants in the new financing—will own about 96.35% of the combined company, while existing Rallybio shareholders will retain approximately 3.65%, assuming Rallybio contributes USD 37.5 million in net cash at closing.

The USD 505 million financing, which was oversubscribed and upsized, includes participation from investors such as Venrock Healthcare Capital Partners, RA Capital Management, Janus Henderson Investors, T. Rowe Price Associates, venBio Partners, Viking Global Investors, Cormorant Asset Management, Foresite Capital, Soleus Capital, TCGX, and Vivo Capital.

Combined with Rallybio’s balance sheet and Candid’s existing capital, the merged company expects a pro forma cash position of roughly USD 700 million, providing runway through 2030.

Rallybio shareholders will also receive contingent value rights tied to proceeds from the previously announced sale of interests in REV102 and potential divestitures of other legacy assets. The transaction, unanimously approved by both boards, is expected to close in mid-2026, pending shareholder approval, SEC registration effectiveness, and Hart-Scott-Rodino antitrust clearance.

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Pipeline and mechanism

Candid’s pipeline focuses on multi-specific antibodies designed to redirect endogenous T cells to eliminate pathogenic B-cell populations. These TCEs bind CD3 on T cells and a target antigen on B-lineage cells, triggering cytotoxic killing through perforin- and granzyme-mediated mechanisms.

The company’s lead program, cizutamig, is a BCMA×CD3 bispecific antibody targeting plasma cells and plasmablasts that produce autoantibodies. Unlike conventional anti-CD20 antibodies—which spare long-lived plasma cells—BCMA targeting aims to directly eliminate the cellular source of autoantibody production.

As of the merger announcement, 87 patients had received cizutamig, including 47 with autoimmune diseases, with early studies reporting low rates of mild cytokine release syndrome. Phase II trials in myasthenia gravis and autoimmune-associated interstitial lung disease are planned for 2026.

Additional programs include:

  • CND261, a CD20×CD3 bispecific antibody, evaluated in more than 100 patients across oncology and autoimmune studies.
  • CND319, a trispecific CD19×CD20×CD3 antibody designed to broaden B-cell depletion and reduce antigen-escape risk, with first-in-human trials planned for mid-2026.

The platform aims to achieve deeper tissue B-cell depletion than conventional anti-CD20 antibodies such as rituximab and ocrelizumab.