Rallybio Corp

Rallybio Corp. announced a definitive merger agreement with Avenzo Therapeutics, Inc., a clinical-stage oncology company, following the termination of a prior merger agreement with Candid Therapeutics. The company received a $50.0 million termination fee from Candid, contributing to a net income of $43.7 million for Q2 2026 and $35.4 million for the first six months. Post-merger, Rallybio shareholders are expected to own approximately 2.8% of the combined entity, with Avenzo shareholders owning 56.6% and new investors 40.6% from a $215.0 million concurrent financing.

Rallybio Corporation entered into a definitive merger agreement with Avenzo Therapeutics, a clinical-stage biotechnology company focused on next-generation oncology therapies. The combined company will operate as Avenzo Therapeutics, trading under "AVZO" on Nasdaq, and will be led by Avenzo's current management team. A concurrent oversubscribed private placement financing of $215 million is expected to fund operations into late 2028, supporting four clinical-stage oncology programs. Pre-Merger Rallybio equityholders are expected to own approximately 2.8% of the combined company, while Avenzo equityholders (including financing investors) will own about 97.2%. Rallybio stockholders will also receive CVRs from legacy asset sales.

Rallybio Corporation announced the termination of its merger agreement with Candid Therapeutics, Inc. on May 3, 2026. Candid terminated the agreement to enter into an alternative agreement with UCB S.A. As a result, Rallybio is entitled to receive a $50,000,000 Parent Termination Fee and an additional $375,000 for expense reimbursement. Rallybio has waived certain rights and agreed to release claims upon receipt of these payments, and plans to withdraw its Form S-4 registration statement.