Close-held Neurogene and Neoleukin Therapeutics (NASDAQ:NLTX) entered into a definitive merger agreement to combine the companies in an all-stock transaction.
The combined company will focus on advancing Neurogene’s pipeline of differentiated genetic medicines, including NGN-401, a clinical-stage product for Rett syndrome, which uses novel gene regulation technology for a potential best-in-class profile.
On closing, which is subject to shareholder approvals, the combined company is expected to operate under the name Neurogene and trade on the Nasdaq under the ticker symbol “NGNE.”
In connection with the merger, Neurogene announced an oversubscribed $95-million private financing led by new and existing healthcare-dedicated specialist and mutual fund institutional investors.
With the cash from both companies at closing and the proceeds of the private financing, the combined company is expected to have approximately $200-million of cash immediately afterclosing.
The cash resources are intended to be used to advance Neurogene’s pipeline through multiple clinical milestones and are expected to fund operations into the second half of 2026. The merger and concurrent private financing are expected to close in the fourth quarter of 2023, subject to stockholder approval of both companies.
