RTW Biotech's Avere to go public in US in reverse merger with NextCure
(Alliance News) - RTW Biotech Opportunities Ltd on Wednesday noted that portfolio holding Avere Therapeutics will go public via a reverse merger with Nasdaq-listed NextCure Inc.
Life sciences sector-focused investor RTW Biotech noted that Avere announced a USD500 million private placement, following a previously announced USD320 million private placement, alongside the anticipated merger.
Back in July, NextCure had announced the planned merger, aimed at advancing a once-weekly oral peptide interleukin-23 receptor antagonist.
NextCure said at the time: "The agreement brings together Avere's differentiated oral IL-23 program with NextCure's public market infrastructure to accelerate development of AVR-001."
AVR-001 is Avere's lead programme, with phase 1b psoriasis data supporting its potential to be rapidly developed as a once-weekly oral therapy, NextCure said in July.
Psoriasis is a skin condition that can cause itchy and painful patches of dry, flaky skin.
RTW Biotech said it will participate in the second private placement of USD500 million, which is expected to close by the end of 2026. The total investment RTW Biotech will have made in the first and second private placements is USD5.9 million, it said.
Back in July, NextCure said: "The private placement is expected to fully fund company operations through the readout of a global phase 2b trial in psoriasis, commencement of a phase 3 trial in psoriasis, and commencement of a phase 2b trial in ulcerative colitis."
RTW Biotech noted: "Avere is the fourth private portfolio company RTW Bio has brought to public markets via reverse merger in 2026, following Yarrow Bioscience, Obsidian Therapeutics, and Serapha Bio expected to close in the fourth quarter of 2026."
Rod Wong chief investments officer for RTW Investments, said: "Avere is a strong example of how we invest across the full life cycle. We are excited to back [Avere Chief Executive Officer] Andrew Cheng and his team again. AVR-001 has a differentiated profile and the USD820 million raised gives Avere ample runway."
RTW Biotech shares were 0.1% lower at USD2.57 each on Wednesday morning in London. NextCure shares closed down 1.6% at USD6.73 each in New York on Tuesday.
By Tom Budszus, Alliance News slot editor
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