Magenta Sets Up Dianthus Merger After Stopping Blood Cancer Trial Due To Patient Death
Magenta Therapeutics Inc (NASDAQ: MGTA) and privately-held Dianthus Therapeutics Inc have announced to merge in an all-stock transaction.
The combined company will focus on advancing Dianthus' pipeline of next-generation complement inhibitors, including DNTH103, currently in Phase 1 trial.
Upon completion of the merger, the combined company is expected to operate under the name Dianthus Therapeutics Inc and trade on the Nasdaq under the ticker symbol DNTH.
Magenta's stockholders will own about 21.3% of the combined company.
Dianthus has secured a $70 million private investment from a syndicate of healthcare investors supporting the merger.
With the cash expected from both companies and the proceeds of the concurrent private financing, the combined company is expected to have approximately $180 million of cash sufficient to fund operations into mid-2026.
In January, following a patient death, Magenta Therapeutics paused the Phase 1/2 dose-escalation trial of its acute myeloid leukemia (AML) therapy.
In February, the company halted further program development and started looking for strategic alternatives.
Soon after, Magenta Therapeutics implemented a reduction of the company's workforce by up to 56 positions or approximately 84%.
Cash is expected to fund the lead program DNTH103 through multiple clinical data catalysts, including Phase 1 in healthy volunteers and Phase 2 trials in generalized Myasthenia Gravis and other indications.
Price Action: MGTA shares are down 19.1% at $0.62 on the last check Wednesday.
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This article Magenta Sets Up Dianthus Merger After Stopping Blood Cancer Trial Due To Patient Death originally appeared on Benzinga.com
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