Rallybio Corporation (NASDAQ: RLYB) and Candid Therapeutics, Inc. have entered into a definitive merger agreement that will see the two companies combine under the name Candid Therapeutics and trade on Nasdaq under the ticker symbol “CDRX.” The agreement, dated March 1, 2026, was announced on March 2, 2026 and is expected to close in mid‑2026 after customary regulatory and shareholder approvals.
The transaction is supported by an oversubscribed private financing of $505.5 million from a syndicate that includes Venrock Healthcare Capital Partners, RA Capital Management, Janus Henderson Investors, and other life‑sciences investors. The financing will fund operations through 2030 and advance Candid’s portfolio of T‑cell engager (TCE) therapeutics for autoimmune diseases, including Phase 2 studies of the lead candidate cizutamig in myasthenia gravis and interstitial lung disease. Under the terms of the deal, pre‑merger Rallybio shareholders will own approximately 3.65 % of the combined company, while Candid shareholders will hold about 96.35 %.
The merger represents a strategic pivot for Rallybio, which had previously focused on rare‑disease programs such as the discontinued RLYB212. By acquiring Candid, Rallybio will shift its emphasis to the rapidly growing T‑cell engager space. Dr. Ken Song, Chairman, President and CEO of Candid, said, “This transaction marks an exciting moment for Candid as we lead the development of TCEs for patients with autoimmune diseases. By combining with Rallybio and securing over $505 million in new financing from a distinguished group of healthcare investors, we have the resources to advance what we view as a transformative therapeutic modality. With Phase 2 studies planned for cizutamig in 2026 and a rich pipeline of next‑generation TCE programs, we will continue to push forward this new drug class.” He added, “TCE antibodies have the most promise as scalable and patient friendly drugs to deplete B cells for treatment of a myriad of autoimmune conditions and represents a once in a generation development opportunity. The drugs we are developing at Candid have the potential to go above and beyond the clinical and commercial success of Humira® and Rituxan® and I am thrilled to be leading the Candid team knowing we can possibly make history by changing the paradigm in how autoimmune diseases are treated.”
Rallybio’s financial profile prior to the merger was modest, with a market capitalization of roughly $39.8 million and a history of net losses. The company recently completed a one‑for‑eight reverse stock split effective February 6, 2026 to meet Nasdaq’s minimum bid price requirements. The implied valuation of the transaction, based on the financing and share ownership structure, suggests a $750 million valuation for Candid and a $47.5 million valuation for Rallybio.
The combined entity will benefit from a substantial capital base and a focused pipeline of TCE candidates that could address unmet needs in autoimmune disease treatment. The infusion of $505 million in financing, coupled with the strategic shift away from rare‑disease programs, positions the new Candid Therapeutics to accelerate clinical development and potentially capture a larger share of the autoimmune therapeutics market.
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