Monday, June 1, 2026
Avenzo to go public through merger backed by $215M financing
The San Diego-based biotech plans to become a publicly traded company through a merger with Rallybio Corp. The deal is expected to fund development of four clinical-stage cancer therapies through multiple key milestones into 2028.
Clinical-stage biotechnology company Avenzo Therapeutics plans to become a publicly traded company through a merger with Rallybio Corp. in a deal backed by a $215 million private financing round aimed at advancing a pipeline of experimental cancer therapies.
The companies announced Monday that Rallybio, based in New Haven, Conn., has agreed to acquire San Diego-based Avenzo in a merger expected to close in the fourth quarter, pending shareholder and regulatory approvals.
Following the transaction, the combined company will operate under the name Avenzo Therapeutics Inc. and is expected to trade on the Nasdaq stock exchange under the ticker symbol AVZO.
The deal includes an oversubscribed private placement expected to raise $215 million from a group of institutional investors, including Blackstone Multi-Asset Investing, accounts advised by T. Rowe Price Investment Management, Vivo Capital and several existing Avenzo investors.
Company officials said the combined organization expects to have enough cash to fund operations into late 2028 while advancing four clinical-stage oncology programs through a series of anticipated development milestones.
Avenzo is developing targeted cancer treatments for solid tumors, including two selective inhibitors designed to improve upon currently approved therapies for hormone receptor-positive, HER2-negative breast cancer. The company is also advancing two antibody-drug conjugates, or ADCs, experimental therapies that deliver cancer-fighting drugs directly to tumor cells.
Its lead programs include AVZO-021 and AVZO-023, which target cyclin-dependent kinases involved in tumor growth, and AVZO-1418 and AVZO-103, antibody-drug conjugates being studied in multiple solid tumor types.
According to the companies, several clinical data updates are expected later this year, including results from early-stage trials evaluating the safety and effectiveness of the therapies.
Under the terms of the merger, Rallybio shareholders will receive a distribution of substantially all of the company's net cash before the transaction closes. Existing Rallybio shareholders are expected to own about 2.8% of the combined company after the merger, while Avenzo shareholders and participants in the financing round will own approximately 97.2%.
Rallybio shareholders also will receive contingent value rights tied to proceeds from the potential sale of certain legacy Rallybio assets.
The combined company will be led by Athena Countouriotis, Avenzo's chair, president and chief executive officer. Mohammad Hirmand will continue as chief medical officer.
"This transaction represents a turning point for Avenzo as we transition to a public company and advance our four potentially differentiated clinical-stage programs for patients with cancer," Countouriotis said in a statement.
Stephen Uden, Rallybio's co-founder and CEO, said the company's board believes the merger provides shareholders an opportunity to participate in the development of a diversified oncology portfolio.
The transaction reflects continued investor interest in oncology-focused biotechnology companies, particularly those with multiple clinical-stage assets and sufficient capital to support lengthy drug-development programs.
The companies announced Monday that Rallybio, based in New Haven, Conn., has agreed to acquire San Diego-based Avenzo in a merger expected to close in the fourth quarter, pending shareholder and regulatory approvals.
Following the transaction, the combined company will operate under the name Avenzo Therapeutics Inc. and is expected to trade on the Nasdaq stock exchange under the ticker symbol AVZO.
The deal includes an oversubscribed private placement expected to raise $215 million from a group of institutional investors, including Blackstone Multi-Asset Investing, accounts advised by T. Rowe Price Investment Management, Vivo Capital and several existing Avenzo investors.
Company officials said the combined organization expects to have enough cash to fund operations into late 2028 while advancing four clinical-stage oncology programs through a series of anticipated development milestones.
Avenzo is developing targeted cancer treatments for solid tumors, including two selective inhibitors designed to improve upon currently approved therapies for hormone receptor-positive, HER2-negative breast cancer. The company is also advancing two antibody-drug conjugates, or ADCs, experimental therapies that deliver cancer-fighting drugs directly to tumor cells.
Its lead programs include AVZO-021 and AVZO-023, which target cyclin-dependent kinases involved in tumor growth, and AVZO-1418 and AVZO-103, antibody-drug conjugates being studied in multiple solid tumor types.
According to the companies, several clinical data updates are expected later this year, including results from early-stage trials evaluating the safety and effectiveness of the therapies.
Under the terms of the merger, Rallybio shareholders will receive a distribution of substantially all of the company's net cash before the transaction closes. Existing Rallybio shareholders are expected to own about 2.8% of the combined company after the merger, while Avenzo shareholders and participants in the financing round will own approximately 97.2%.
Rallybio shareholders also will receive contingent value rights tied to proceeds from the potential sale of certain legacy Rallybio assets.
The combined company will be led by Athena Countouriotis, Avenzo's chair, president and chief executive officer. Mohammad Hirmand will continue as chief medical officer.
"This transaction represents a turning point for Avenzo as we transition to a public company and advance our four potentially differentiated clinical-stage programs for patients with cancer," Countouriotis said in a statement.
Stephen Uden, Rallybio's co-founder and CEO, said the company's board believes the merger provides shareholders an opportunity to participate in the development of a diversified oncology portfolio.
The transaction reflects continued investor interest in oncology-focused biotechnology companies, particularly those with multiple clinical-stage assets and sufficient capital to support lengthy drug-development programs.
