NextCure and Avere to merge, targeting oral IL-23 therapy

NextCure, Inc. (Nasdaq: NXTC) and privately held Avere Therapeutics, Inc. have announced a definitive all-stock merger agreement. Upon closing, expected in the second half of 2026, the combined company will operate as Avere Therapeutics, Inc. and trade on Nasdaq under the ticker symbol "AVRX."

The merger is accompanied by a $320 million private placement led by Fairmount and Hansoh Pharmaceutical Group Co., Ltd., with participation from Venrock Healthcare Capital Partners, General Atlantic, Janus Henderson Investors, Wellington Management, T. Rowe Price Investment Management Inc., RTW Investments, and other institutional investors. The financing includes $251 million in convertible notes to be exchanged for common stock at closing.

Avere's lead asset, AVR-001, is an oral cyclic peptide IL-23 receptor antagonist licensed from Hansoh on an ex-Greater China exclusive basis. Under that agreement, Hansoh received $120 million in upfront payments and is eligible for up to $2.18 billion in milestone payments plus royalties. AVR-001 is engineered with a half-life of approximately 100 hours, enabling once-weekly dosing.

Phase 1b data from a Hansoh-conducted trial in moderate-to-severe plaque psoriasis showed that AVR-001, dosed once weekly for four weeks, produced Week 4 and Week 8 PASI and PASI 75 responses that were comparable on a cross-trial basis to a first-generation once-daily oral inhibitor. The drug was described as generally well-tolerated over the four-week dosing period.

Avere plans to initiate a Phase 2b psoriasis study in early 2027, with a readout expected in the first half of 2028. A separate Phase 2b psoriasis study conducted by Hansoh in China is expected to read out in 2027. The financing is intended to fund operations through the Phase 2b readout, initiation of a Phase 3 psoriasis trial, and initiation of a Phase 2b ulcerative colitis trial.

Under merger terms, pre-merger NextCure stockholders are expected to hold approximately 1.21% of the combined company, while pre-merger Avere stockholders will hold approximately 98.79%. NextCure stockholders will also receive a contingent value right entitling them to 90% of net proceeds from any monetization of NextCure's pipeline assets over two years following closing.

Andrew Cheng, MD, PhD, will serve as CEO, President, and Chairman of the combined company. The transaction requires approval from stockholders of both companies.

You May Also Be Interested In

• Mapfre to acquire Safety Insurance Group in $1.54B all-cash deal
• AMD (AMD) PT Raised to $640 at Jefferies
• VA awards Salesforce a $1.6B contract for veteran services