Rallybio Corporation, a New Haven-based clinical-stage biotechnology company, has announced a definitive merger agreement with Avenzo Therapeutics, Inc., a clinical-stage oncology company, alongside a concurrent private placement financing of $215 million that will fund the combined company's operations into late 2028.

Under the terms of the agreement, Rallybio will acquire Avenzo through a merger transaction. The combined company will operate under the Avenzo Therapeutics name and is expected to trade on Nasdaq under the ticker symbol "AVZO." The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the fourth quarter of 2026, pending stockholder approval and other customary closing conditions.

The $215 million financing was oversubscribed and drew participation from investors including Blackstone Multi-Asset Investing, accounts advised by T. Rowe Price Investment Management, Inc., Vivo Capital, and existing investors including OrbiMed, Foresite Capital, and New Enterprise Associates, among others. The capital is intended to advance Avenzo's four clinical-stage programs through multiple milestones, including updated Phase 1 data across the pipeline and the initiation of multiple Phase 2 studies.

"This transaction represents a turning point for Avenzo as we transition to a public company and advance our four potentially differentiated, clinical stage programs for patients with cancer," said Athena Countouriotis, M.D., Chair, President, and CEO of Avenzo. "By combining with Rallybio and securing $215 million in additional capital from a distinguished group of healthcare investors, we believe that we have the resources to advance our pipeline beyond multiple potential data read outs."

"We are pleased to announce this transaction with Avenzo, which represents a compelling opportunity for Rallybio stockholders to participate in the development of a portfolio of potentially differentiated oncology therapies," said Stephen Uden, M.D., Co-Founder and CEO of Rallybio. "Rallybio's Board of Directors and management team are supportive of this transaction and believe the combined company is well positioned to execute on the development of its pipeline under Avenzo's leadership."

Following the closing, pre-transaction Rallybio equityholders are expected to own approximately 2.8% of the combined company, with pre-transaction Avenzo equityholders holding the remaining approximately 97.2%. Rallybio intends to distribute substantially all of its pre-closing net cash to its stockholders in connection with the transaction, and pre-closing Rallybio stockholders will receive contingent value rights (CVRs) tied to proceeds from the sale of interests in Rallybio's former REV102 program and potential disposition of other legacy assets.