RallyBio pursues second reverse merger, this time with cancer drug developer Avenzo Therapeutics

RallyBio announced on Monday that it will merge with cancer-focused Avenzo Therapeutics in a reverse‑merger transaction. The combined entity will operate under the Avenzo Therapeutics name.

The deal includes a $215 million financing round that Avenzo recently completed. After the merger, the company will list on Nasdaq with the ticker AVZO.

This is RallyBio’s second attempt at a reverse merger. Earlier this year its planned combination with Candid Therapeutics collapsed after Candid was acquired by UCB. RallyBio, which went public in 2021, has faced layoffs and disappointing trial results for its lead rare‑disease candidate.

The transaction is expected to close by the end of 2026, giving shareholders a new platform to advance small‑molecule and antibody‑drug conjugate programs.