Candid Therapeutics Goes Public in $700M Deal to Forge Autoimmune Leader

NEW HAVEN, Conn. & SAN DIEGO – March 02, 2026 – In a transformative deal poised to create a new powerhouse in autoimmune disease treatment, private biotechnology firm Candid Therapeutics announced it will merge with the publicly traded Rallybio Corporation. The transaction is coupled with a concurrent, oversubscribed private financing of more than $505 million, arming the combined company with a war chest of approximately $700 million and a clear path to advancing its novel T-cell engager therapies.

Upon completion of the merger, the new entity will operate under the name Candid Therapeutics, Inc., and trade on the Nasdaq under the ticker symbol 'CDRX'. The deal, which has received unanimous approval from both companies' boards, effectively serves as a public market debut for Candid, powered by a massive influx of capital from a blue-chip syndicate of healthcare investors.

A Strategic Reverse Merger

The transaction is structured as a reverse merger, a strategic maneuver that allows a private company like Candid to gain a public listing by merging with an existing public entity. This route bypasses the traditional, often lengthy, initial public offering (IPO) process. For Rallybio, which recently executed a reverse stock split to maintain its Nasdaq listing, the deal represents a significant strategic pivot.

Rather than continuing to pursue its own pipeline in rare diseases, Rallybio is providing its shareholders with a stake in a well-funded, high-growth enterprise in the burgeoning field of immunotherapy. Pre-transaction Rallybio equityholders are expected to own approximately 3.65% of the combined company. They will also receive Contingent Value Rights (CVRs), which entitle them to a portion of potential future proceeds from the sale of Rallybio’s legacy assets, including its C5 inhibitor program, RLYB116.

"We are pleased to announce this transaction, which we believe represents a compelling opportunity for Rallybio stockholders to participate in the future value creation of a well-capitalized, clinical-stage company with a differentiated and broad portfolio of TCE drug candidates," said Dr. Stephen Uden, Co-Founder and Chief Executive Officer of Rallybio, in the official announcement.

The Science: 'Resetting' the Immune System

At the heart of the deal is Candid's pioneering work in T-cell engager (TCE) therapeutics for autoimmune diseases. TCEs are bispecific antibodies engineered to act as a bridge, bringing a patient's own T-cells—the powerful killers of the immune system—into direct contact with disease-causing cells, triggering their destruction. While this technology has made significant strides in oncology, its application in autoimmune disorders is a new and promising frontier.

Candid’s platform aims to selectively deplete the B-cells and plasma cells that produce autoantibodies, the root cause of many autoimmune conditions. The goal is not just to manage symptoms, but to induce a deep and durable 'reset' of the immune system, potentially leading to long-term, treatment-free remission.

The company's pipeline is one of the most advanced and diversified in the field:

• Cizutamig: The lead candidate is a BCMA-targeting TCE that has already been administered to 47 patients with autoimmune diseases. Early data suggests favorable tolerability with low rates of cytokine release syndrome (CRS), a common concern with immunotherapies. Candid plans to initiate global Phase 2 studies in myasthenia gravis and interstitial lung disease (ILD) in 2026.

• Next-Generation TCEs: The pipeline also includes CND261, a CD20-targeting TCE, and CND319, a dual-targeting TCE aimed at both CD19 and CD20. These programs offer different strategies for B-cell depletion, providing significant optionality across more than 10 indications currently under study.

This approach places Candid at the forefront of a major shift in immunology, moving beyond broad immunosuppression toward highly targeted, potentially curative therapies.

A $505 Million Vote of Confidence

The concurrent financing of over $505 million is a resounding endorsement of Candid's science, strategy, and leadership. The fact that the round was both oversubscribed and upsized indicates intense investor demand. The syndicate includes a who's who of premier healthcare investors, such as Venrock Healthcare Capital Partners, RA Capital Management, Janus Henderson Investors, and accounts advised by T. Rowe Price Associates, Inc.

This substantial capital injection is expected to provide a cash runway through 2030, a remarkable degree of financial stability for a clinical-stage biotech company. It de-risks the company's development plans, allowing it to advance its pipeline through multiple crucial clinical milestones without the near-term pressure of seeking additional funding.

"This transaction marks an exciting moment for Candid as we lead the development of TCEs for patients with autoimmune diseases," stated Dr. Ken Song, Chairman, President, and CEO of Candid, who will lead the combined company. "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."

Proven Leadership at the Helm

Investor confidence is further bolstered by the track record of the incoming leadership team. Dr. Ken Song is a seasoned biotech entrepreneur renowned for his success at RayzeBio, a radiopharmaceutical company he led from its inception through a successful IPO and its eventual $4.1 billion acquisition by Bristol Myers Squibb in early 2024. This history of creating significant shareholder value is a key asset for the new Candid Therapeutics.

He is joined by a management team with deep expertise in drug development and finance, including executives who were instrumental in the success of companies like DICE Therapeutics, which was acquired by Eli Lilly. This combination of scientific vision and business acumen is critical for navigating the complex regulatory and commercial landscape for novel therapies.

The merger is expected to close in mid-2026, subject to stockholder approvals and other customary closing conditions. With a robust pipeline, a fortified balance sheet, and a proven leadership team, the newly formed Candid Therapeutics is now positioned to become a dominant force in the quest to transform treatment for patients suffering from severe autoimmune diseases.