NextCure to merge with Avere, backed by $320M raise for oral IL-23 drug
What's the deal? NextCure (Nasdaq: NXTC) and privately held Avere Therapeutics have agreed to an all-stock merger, combining NextCure's public listing with Avere's oral IL-23 program, AVR-001. The combined company will operate as Avere Therapeutics and trade on Nasdaq under the ticker "AVRX."
Why now? The deal comes with a concurrent $320 million private placement, including $251 million of convertible notes that will exchange into common stock at closing. The financing is expected to fund operations through a global Phase 2b psoriasis readout and the starts of Phase 3 psoriasis and Phase 2b ulcerative colitis trials.
What's the endgame? AVR-001 is a once-weekly oral therapy. Early Phase 1b data showed it achieved PASI psoriasis responses comparable to a first-generation oral inhibitor. Avere holds ex-China rights to the drug under a license from Hansoh.
What could go wrong? The all-stock merger implies equity dilution for existing NextCure shareholders, and the key Phase 2b psoriasis readout is not expected until the first half of 2028. Hansoh's license terms add a heavy cost load: $120 million upfront, up to $2.18 billion in milestones, and mid-single to low-double-digit royalties on sales.
The deal is expected to close in the second half of 2026. NextCure shares rose 50% on the announcement, to $3.27.
The signal: The transaction hands a well-funded private developer a public listing while recapitalising a small-cap biotech — a reverse-merger route that lets a clinical-stage asset reach later trials without a traditional IPO.
Read more: stocktitan.net
