Jade Biosciences, a biotech firm focused on developing treatments for immune diseases, has announced a reverse merger with Aerovate Therapeutics.
This merger will allow Jade to enter public markets and raise $300 million through private financing from a consortium of life sciences investors. The transaction is expected to close in the first half of 2025, with the newly combined entity operating under the Jade name and trading on the Nasdaq under the ticker symbol “JBIO.” Jade becomes the fourth spinout from Paragon Therapeutics to pursue a public listing via a reverse merger.
Jade's lead asset is an antibody designed to treat IgA nephropathy, a kidney disease that impairs kidney function. The financial strategy behind the merger is robust, with Jade's pre-merger financing expected to sustain operations through 2027. Aerovate plans to distribute a cash dividend of $65 million to its pre-merger shareholders.
Jade's entry into the IgA nephropathy treatment space comes at a time of heightened competition, with several major pharmaceutical companies actively developing therapies for this condition. Jade's lead asset, JADE-001, is engineered to offer superior potency and an extended half-life compared to existing anti-APRIL monoclonal antibodies.
Tom Frohlich, currently the CEO of Jade, will lead the combined company post-merger. The board of directors will include representatives from key investors such as Samsara BioCapital, Oruka Therapeutics, and Fairmount.
The merger enhances Jade's financial standing and positions it strategically within the biotech landscape. Stakeholders will closely monitor the developments and outcomes of Jade's clinical trials and the overall performance of the combined entity in the public arena.