RallyBio

The deak would mark the end of Rallybio's Connecticut operations.

New Haven-based Rallybio Corp. said Monday its planned merger with a San Diego biotechnology company has been terminated.

New Haven-based Rallybio Corp.’s proposed merger with San Diego biotech Candid Therapeutics includes a potential $50 million breakup fee payable by Candid.

New Haven-based Rallybio Corp. has agreed to merge with a San Diego biotechnology company in a deal backed by more than $505 million in new investor financing that will effectively end Rallybio’s run as a standalone public company.

The company said the move is primarily aimed at addressing Nasdaq listing requirements.

Rallybio reported a third-quarter profit driven by the sale of a joint-venture asset, but warned it would need to raise significant capital in the future.

Just 57 days after agreeing to sell one of its therapies to Utah-based Recursion Pharmaceuticals for up to $25 million, New Haven-based Rallybio Corp. has received $12.5 million as its first equity milestone payment.

Rallybio Corp., a New Haven-based biotechnology company developing therapies for rare diseases, said Tuesday it has agreed to sell one of those therapies to Utah-based Recursion Pharmaceuticals for up to $25 million.