NextCure (NXTC) stock rocketed higher on Tuesday after the clinical-stage biopharmaceutical company revealed a merger agreement. The company announced an all-stock merger with private biotech firm Avere Therapeutics. This deal will shift the company’s focus to a new oral treatment for inflammatory diseases. The combined company will operate as Avere Therapeutics and is expected to trade on the Nasdaq under the ticker symbol AVRX after the deal closes in the second half of 2026. The transaction is backed by a concurrent $320 million in private financing led by Fairmount and Hansoh Pharmaceutical (HK:3692), along with several large healthcare investors.
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NextCure said the merger is centered on AVR-001, Avere Therapeutics’ once-weekly oral IL-23 receptor blocker for diseases such as psoriasis and ulcerative colitis. Avere recently licensed the drug outside Greater China from Hansoh in a deal that included $120 million upfront and up to $2.18 billion in future milestone payments. The new financing is expected to fund the company through a Phase 2b psoriasis trial, the start of a Phase 3 psoriasis study, and the launch of a Phase 2b ulcerative colitis study. NextCure shareholders are expected to own about 1.21% of the combined company and will also receive contingent value rights tied to any future sale or licensing of NextCure’s existing pipeline for two years after the deal closes.
NextCure CEO Michael Richman said, “We are pleased to announce this transaction with Avere, which represents a compelling opportunity for NextCure’s stockholders to participate in the development of once-weekly AVR-001 and its significant therapeutic and commercial potential.” The combined company will be led by Avere CEO Dr. Andrew Cheng, who said the financing and public listing will help speed the development of AVR-001 as it moves into additional clinical trials.
NextCure Stock Movement Today
NextCure stock was up 301.83% on Tuesday, but was still down 84.64% year-to-date. The stock has also fallen 54.2% over the past 12 months.
With today’s merger news came heavy trading of NXTC stock, as more than 44 million shares changed hands. For comparison, the company’s three-month average daily trading volume was about 37,000 shares.
Is NextCure Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for NextCure is Moderate Buy, based on two Buy ratings over the past three months. With that comes an average NXTC stock price target of $20, which represents a potential 817.43% upside for the shares. (See NXTC Stock Forecast)
