Kalaris to go public via reverse merger with AlloVir
Public biotechnology company AlloVir has agreed to merge with the privately held Kalaris Therapeutics, nearly one year after a clinical setback sunk its stock price and its options.
Through a reverse merger announced Friday, the two companies will combine to create a new firm that will operate under Kalaris’ name and trade on Nasdaq with the ticker “KLRS.” The new firm will have about $100 million in cash at the merger’s closing, which is expected around the first quarter of next year.
The deal marks an end of the road for AlloVir, which has been reeling since stopping three clinical trials of its CAR-T therapy last year. AlloVir discontinued the studies after data monitoring committees recommended they be stopped for “futility.” Less than a month later, the company reduced its workforce by 95%.
AlloVir had about $130 million in cash and equivalents as of June 30.
Once merged, the combined company will focus on advancing Kalaris’ main drug candidate, an anti-VEGF therapy called TH103 that was developed by Kalaris board member Napoleone Ferrara.
TH103 is currently in Phase 1 testing for neovascular age-related macular degeneration, which causes vision loss. Data from that study are expected in the third quarter of next year, and Kalaris believes it has potential to treat other disorders affecting the eye.
Per the agreement, AlloVir will acquire all outstanding equity of Kalaris. Stockholders of AlloVir are expected to own about 25% of the combined company, while Kalaris stockholders will own about 75%.
“AlloVir ran a thorough and strategic process, and we believe that this transaction represents the company’s commitment to delivering value to the AlloVir stockholders,” said Diana Brainard, CEO of AlloVir, in a statement.
The companies say the $100 million in expected funds available will be enough to support operations through 2026. Kalaris CEO Andrew Oxtoby will lead the combined company, along with Kalaris’ chief operating officer Jeffrey Nau.
Kalaris was founded in 2019 by Samsara BioCapital, which will continue to be a shareholder in the firm.
Editor’s note: This story has been updated to include mention of Samsara.
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