Rallybio and Avenzo agree to merge with $215 million private placement

Rallybio Corporation (NASDAQ: RLYB) and Avenzo Therapeutics announced a definitive merger agreement under which Rallybio will acquire the clinical-stage oncology company. The combined entity will operate as Avenzo Therapeutics and trade on NASDAQ under the ticker "AVZO."

Concurrent with the merger, Avenzo secured $215 million in gross proceeds through an oversubscribed private placement. Investors include Blackstone Multi-Asset Investing, T. Rowe Price Investment Management, Vivo Capital, OrbiMed, and other institutional investors. The financing is expected to fund operations into late 2028.

Upon closing, pre-transaction Rallybio shareholders will own approximately 2.8% of the combined company, while pre-transaction Avenzo shareholders and new investors will hold about 97.2%. Rallybio plans to distribute substantially all of its pre-closing net cash to existing shareholders.

Avenzo operates four clinical-stage oncology programs, including selective CDK inhibitors AVZO-021 and AVZO-023 for hormone receptor-positive breast cancer, and bispecific antibody-drug conjugates AVZO-1418 and AVZO-103 targeting various solid tumors. The company has conducted studies across more than 90 patients.

The transaction received unanimous approval from both boards of directors and is expected to close in Q4 2026, subject to shareholder approval and SEC registration statement effectiveness. Dr. Athena Countouriotis will lead the combined company as CEO.

The companies plan to present clinical data updates at the 2026 ASCO Annual Meeting and hold a joint conference call on June 1, 2026.

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