Kalaris Set to Become Public Company Through Reverse Merger with AlloVir

Kalaris Set to Become Public Company Through Reverse Merger with AlloVir

Kalaris Set to Become Public Company Through Reverse Merger with AlloVir

AlloVir, a publicly traded biotechnology firm, has announced its intention to merge with privately owned Kalaris Therapeutics, nearly a year after the company faced a major clinical hurdle that significantly impacted its stock value and options.

This reverse merger, revealed on Friday, will lead to the formation of a new corporate entity operating under the Kalaris name, which will be listed on Nasdaq under the ticker symbol “KLRS.” The organization is projected to have approximately 0 million in cash available at the time of the merger’s completion, anticipated in the first quarter of the coming year.

The merger signifies a critical juncture for AlloVir, which has struggled since the previous year when it halted three clinical trials for its CAR-T therapy. The termination of these trials came after recommendations from data monitoring committees citing “futility.” Consequently, just weeks later, the company initiated a drastic reduction of its workforce by 95%.

As of June 30, AlloVir reported around 0 million in cash and equivalents.

Following the merger, the new entity will prioritize the development of Kalaris’ leading drug candidate, an anti-VEGF therapy named TH103, which has been developed with insight from Kalaris board member Napoleone Ferrara.

TH103 is presently undergoing Phase 1 clinical trials targeting neovascular age-related macular degeneration, a condition that can lead to vision impairment. Results from this study are projected to be available in the third quarter of the upcoming year, and Kalaris envisions its potential applications extending to other vision-related conditions.

According to the merger agreement, AlloVir will gain ownership of all Kalaris’s outstanding equity. Post-merger, AlloVir stockholders are expected to retain about 25% of the new entity, while Kalaris stockholders are projected to possess around 75%.

In a statement, Diana Brainard, CEO of AlloVir, commented, “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.”

The merged company anticipates that the 0 million in projected funds will sufficiently support its operational needs through 2026. Leadership will come from Kalaris CEO Andrew Oxtoby, alongside Jeffrey Nau, the chief operating officer of Kalaris.

Kalaris was established in 2019 by Samsara BioCapital, which will maintain its status as a shareholder in the newly formed company.

Editor’s note: This story has been updated to include mention of Samsara.