Less than a month after its planned merger with Candid Therapeutics fell apart, New Haven-based biotech firm Rallybio Corp. has struck another deal to combine with a private drug developer — a transaction that will result in the closure of its Connecticut headquarters, according to a spokesperson.
Rallybio announced Monday that it has entered into a merger agreement with San Diego-based Avenzo Therapeutics, a clinical-stage oncology company. The deal is backed by a concurrent $215 million private financing and is expected to close in the fourth quarter, subject to shareholder and regulatory approvals, the companies said.
A Rallybio spokesperson said the company’s New Haven office will close following the merger because Avenzo has no immediate need for a Connecticut location. The spokesperson also said Rallybio’s current management team will not continue with the combined company.
Rallybio reported 14 full-time employees as of Dec. 31, 2025, down from 25 a year earlier, according to its annual report. Its New Have headquarters has been located at 234 Church St.
The announcement comes weeks after Rallybio’s proposed merger with another San Diego biotechnology company collapsed when Candid Therapeutics opted to pursue a separate transaction. That merger termination triggered a $50 million breakup payment to Rallybio, which said at the time it would evaluate strategic alternatives.
Under the new agreement, Rallybio will acquire Avenzo, and the combined company will operate under the Avenzo Therapeutics name and trade on Nasdaq under the ticker symbol AVZO.
Avenzo is developing several experimental cancer drugs currently in clinical testing, according to the company. Rallybio has been developing treatments for rare diseases, but has scaled back its pipeline and workforce in recent years as it sought additional capital.
Avenzo does not plan to continue development of Rallybio’s existing drug candidates, according to the spokesperson. Instead, shareholders may receive future payments if Rallybio’s remaining assets are sold.
The companies said the $215 million financing, which has commitments from institutional investors, is expected to fund operations into late 2028 and support development of Avenzo’s four clinical-stage drug programs.
Following the merger, existing Rallybio shareholders are expected to own about 2.8% of the combined company, while Avenzo shareholders and investors participating in the financing would own approximately 97.2%.
The deal was unanimously approved by the boards of both companies and remains subject to approval by shareholders and other customary closing conditions.
