At a Glance
- Company: Candid Therapeutics (post-merger with RallyBio)
- Location: US-based (immunology focus)
- Deal value: $505M private investment in public equity
- Focus area: T-cell engagers for MG, ILD, autoimmune disease
- Next steps: Phase 2 initiation for lead CND261
What happened?
Candid Therapeutics announced a reverse merger with RallyBio on 2 March 2026, taking the Nasdaq-listed shell public while raising $505 million through a concurrent private investment in public equity (PIPE). Lead asset CND261, a T-cell engager targeting pathogenic B cells, will enter phase 2 trials in myasthenia gravis (MG) with generalised weakness.
Why does it matter?
Autoantibody-driven diseases like MG and interstitial lung disease (ILD) affect millions with limited targeted therapies; Candid’s bispecific T-cell engagers selectively deplete disease-causing cells while sparing healthy immunity, potentially offering durable responses superior to rituximab/IVIg. $505M war chest funds multiple readouts in underserved indications.
Who’s behind it?
Candid Therapeutics develops precision immunology; RallyBio provides public vehicle. PIPE investors include RA Capital, ARCH Venture, RTW Investments. CEOs highlighted accelerated path to clinic/market.
How was it achieved?
Reverse merger combines Candid’s preclinical assets with RallyBio’s listing; PIPE priced at $12/share premium. CND261 preclinical data showed 95% pathogenic B-cell depletion in MG models with favourable safety.
What’s next?
CND261 phase 2 starts Q3 2026 in MG; phase 1/2 in ILD follows. Funds support INDs for three additional engagers targeting lupus, Sjögren’s and dermatomyositis through 2029.
What are people saying?
Candid CEO: “Transformational capital… precision T-cell therapies.” Investors: “High-conviction bet on next-gen autoimmune depletion.”