Shares of cell therapy company Talaris Therapeutics (NASDAQ:TALS) are up nearly 26% at the time of writing today after it agreed to merge with biotechnology company Tourmaline Bio in an all-stock deal.
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The combined entity will function under the name Tourmaline Bio and will focus on advancing TOUR006, an anti-IL-6 antibody, targeted for thyroid eye disease and atherosclerotic cardiovascular disease.
Tourmaline has previously closed a $112 million Series A financing and to support the transaction, has entered into a $75 million private placement agreement with a syndicate of investors. Further, Talaris investors stand to make $64.8 million in dividends before the transaction closes and overall, a total of $3.43 per Talaris share held by them.
On a fully diluted basis, Talaris investors are expected to own about 21.3% of the combined entity with the rest owned by Tourmaline investors. The transaction is anticipated to close in the fourth quarter of this year.
Importantly, the combined company will have a cash pile of nearly $210 million while it focuses on three clinical studies for TOUR006.
With today’s price gains, Talaris shares are now up nearly 141% so far this year.
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