Clinical-stage biotechnology companies Rallybio Corporation (Nasdaq:RLYB) and Avenzo Therapeutics Inc announced on Monday that they have entered into a definitive merger agreement under which Rallybio will acquire Avenzo, with the combined company expected to operate as Avenzo Therapeutics Inc and trade on Nasdaq under the ticker symbol 'AVZO'.

In connection with the transaction, Avenzo has secured a concurrent oversubscribed private placement financing of USD215m in gross proceeds, backed by a syndicate of healthcare institutional investors and mutual funds. This financing is expected to support operations into late 2028 and fund advancement of four clinical-stage oncology programmes through multiple milestones, including clinical data readouts and initiation of Phase 2 studies.

The merger has been unanimously approved by both boards of directors and is expected to close in Q4 2026, subject to stockholder approvals, SEC registration effectiveness, and other customary closing conditions.

Rallybio intends to distribute substantially all pre-closing net cash to shareholders. The post-transaction ownership expected to be approximately 2.8% for Rallybio equityholders and 97.2% for Avenzo equityholders, alongside contingent value rights tied to legacy asset proceeds.