Chemomab Therapeutics, Scipher Medicine Announce Merger Agreement, Stock Down In Pre-Market

(RTTNews) - Wednesday, Chemomab Therapeutics Ltd. (CMMB) and Scipher Medicine Corporation announced a merger agreement to combine the companies, which will focus on advancing nebokitug, a first-in-class clinical stage anti-CCL24 antibody, into a Phase 2 trial for the treatment of rheumatoid arthritis.

As per the terms of the deal, the pre-merger Chemomab equity holders are expected to own approximately 32% of the combined company, which will operate as Scipher Medicine Corporation. Meanwhile, pre-merger Scipher equity holders are expected to own approximately 68% of the combined company, each on a fully-diluted basis and subject to adjustment.

Additionally, pre-merger Chemomab shareholders are expected to receive contingent value rights, providing the opportunity to receive additional value upon the achievement of certain specified milestones related to nebokitug.

The combined company, which will trade on Nasdaq under the ticker symbol 'SCIP', will be led by Chief Executive Officer Dr. Reginald Seeto.

To support the merger, a group of Scipher's existing investors, led by Northpond Ventures and joined by Khosla Ventures, Blue Owl Healthcare Opportunities, funds managed by Neuberger, and other major investors, has committed about $30 million in new funding for Scipher, Chemomab, and the combined company.

The merged company is expected to have enough cash at closing to fund its operations through the second half of 2028.

It also expects to report the top-line results from its Phase 2 rheumatoid arthritis trial in the first half of 2028.

The deal is anticipated to close in the fourth quarter of 2026.

In the pre-market hours, CMMB is trading at $2.39, down 13.72 percent on the Nasdaq.