Rallybio and Candid Therapeutics announce merger agreement

Rallybio Corporation (NASDAQ: RLYB) and Candid Therapeutics announced they have entered into a definitive merger agreement where Rallybio will acquire Candid. The combined company will operate under the name Candid Therapeutics and trade on Nasdaq under the ticker symbol "CDRX".

In connection with the merger, Candid secured a concurrent private financing of over $505 million from healthcare institutional investors and mutual funds, including Venrock Healthcare Capital Partners, RA Capital Management, Janus Henderson Investors, and accounts advised by T. Rowe Price Associates. The combined company's cash balance at closing is expected to fund operations through 2030.

Upon completion, pre-transaction Rallybio equityholders are expected to own approximately 3.65% of the combined company, while pre-transaction Candid equityholders will own approximately 96.35%. Rallybio stockholders will also receive contingent value rights entitling them to a portion of cash proceeds from the previously announced sale of interests in REV102 and potential disposition of other legacy assets.

The transaction has been unanimously approved by both boards of directors and is expected to close in mid-2026, subject to stockholder approval, SEC registration statement effectiveness, Hart-Scott-Rodino antitrust clearance, and other customary closing conditions.

Candid operates as a clinical-stage biotechnology company developing T-cell engager therapeutics for autoimmune diseases. The company's lead program, cizutamig, targets B-cell maturation antigen and has been dosed in 87 patients including 47 autoimmune patients across multiple indications. Global Phase 2 studies in myasthenia gravis and interstitial lung disease are planned to initiate in 2026.

The companies will hold a joint conference call on March 2, 2026 at 8:30 AM ET to discuss the transaction details.

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