By Colin Kellaher

Rallybio has inked a deal to combine with fellow clinical-stage biotechnology company Candid Therapeutics in an all-stock reverse merger.

Rallybio on Monday said its shareholders will own about 3.65% of the combined company, while Candid's investors will own the rest.

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.

Rallybio said the combined company will operate under the name Candid Therapeutics and trade on Nasdaq under the symbol CDRX upon completion of the deal, slated for mid-2026.

Rallybio said Candid, which is advancing a portfolio of T-cell engager therapeutics for autoimmune diseases, has agreements for more than $500 million in financing from a syndicate of healthcare institutional investors and mutual funds that will fund operations through 2030.

The New Haven, Conn., company said its shareholders will receive contingent value rights entitling them to part of the cash proceeds received from its planned sale of interests in REV102 and the potential disposition of its other legacy assets.

Trading in shares of Rallybio, which closed Friday at $7.54, was halted premarket Monday.

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

(END) Dow Jones Newswires

March 02, 2026 08:36 ET (13:36 GMT)

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