The combined company will advance the clinical development of TNT119 for autoimmune diseases. Credit: Dragana Gordic / Shutterstock.com.
US-based Eliem Therapeutics has announced a definitive agreement for the acquisition of development-stage private biotechnology company Tenet Medicines.
The acquisition is aimed at enhancing Eliem’s portfolio with a clinical-stage programme targeting unmet needs in autoimmune diseases.
The deal is supported by a securities purchase agreement in which Eliem will sell 31,238,282 shares at $3.84 each, expecting to raise gross proceeds of $120m.
The private placement will see investments from investors including RA Capital Management, Boxer Capital, Deep Track Capital, Pontifax and Samsara Biocapital.
Following the acquisition and private placement, the cash reserves of the merged business will be $210m.
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“We believe that TNT119 has best-in-class potential and could be a transformative treatment option for many patients suffering from debilitating autoimmune disorders.
“This transaction and the support from leading life sciences investors will allow us to accelerate our development plans and continue advancing TNT119 for the potential benefit of patients.”