Obsidian Therapeutics and Galera Therapeutics have entered into a definitive all-stock merger agreement, supported by $350 million in concurrent private financing. Upon closing, the combined entity will operate as Obsidian Therapeutics and plans to trade on the Nasdaq under the ticker symbol “OBX.”
Deal Structure and Financials:
-
Reverse Merger Framework: Obsidian is utilizing Galera’s public listing and cash reserves as a vehicle to access public markets. Post-merger, pre-merger Obsidian stockholders will own approximately 53.2%, PIPE investors 45%, and Galera stockholders 1.8% of the combined entity.
-
Capital Position: The $350 million private placement, led by prominent investors including Novo Holdings, RA Capital, and Wellington Management, is expected to fund operations through the second half of 2028.
-
Leadership: Madan Jagasia, the current CEO of Obsidian, is slated to lead the newly formed organization.
Core Focus: Next-Generation TIL Therapy (OBX-115): The merger centers on advancing OBX-115, a next-generation Tumor Infiltrating Lymphocyte (TIL) therapy designed to address the limitations of conventional treatments:
-
Eliminating IL-2 Toxicity: Unlike traditional TIL therapies that require toxic high-dose Interleukin-2, OBX-115 incorporates regulatable membrane-bound IL-15. This innovation allows for outpatient administration and low-dose conditioning.
-
Minimally Invasive Manufacturing: The therapy can be manufactured using tumor tissue obtained through core needle biopsies rather than more invasive surgical procedures.
-
Clinical Milestones: Key readouts are anticipated in 2027, with Phase I lung cancer data expected in the first half of the year and topline melanoma registration-enabling data by year-end.
The transaction is expected to close by the third quarter of 2026, marking a strategic move to accelerate the delivery of engineered cell therapies to patients with advanced cancers.