By Colin Kellaher

Reneo Pharmaceuticals has agreed to combine with privately held OnKure in an all-stock reverse merger that will create a clinical-stage biopharmaceutical company focused on advancing OnKure's portfolio of precision cancer drugs.

Reneo on Monday said the combined company will have about $120 million of cash resources at closing, including $65 million from a planned private financing, which would provide a runway into the fourth quarter of 2026.

A reverse merger allows a private company to go public by merging with a public one at a lower cost than is involved in traditional initial public offerings.

Reneo, based in Irvine, Calif., said that excluding the financing, its shareholders will own about 31% of the combined company, while OnKure investors will own roughly 69%.

Reneo said the combined company will operate under the name OnKure Therapeutics and trade on the Nasdaq Global Market under the ticker OKUR.

The deal and private financing are slated to close later this year.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

May 13, 2024 08:13 ET (12:13 GMT)

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