Zurich-based start-up Veraxa Biotech has reached a deal to merge with special purpose acquisition company (SPAC) Voyager, gaining a listing on the Nasdaq that will give it a valuation of around $1.64 billion.
The transaction will also add around $263 billion to Veraxa's cash position, which will be used to develop its portfolio of antibody, antibody-drug conjugate (ADC), and bispecific T-cell engager (TCE) candidates for cancer.
Veraxa's lead drug candidate is an anti-FLT3 antibody in early-stage clinical testing for haematological cancers, acquired via its acquisition of Germany's Synimmune in 2024, but its long-term focus is a platform called BiTAC – standing for Bi-targeted Tumour-Associated Cytotoxicity – which uses a novel antibody design to make therapies safer for patients.
BiTACs consist of two complementary antibody precursors, which only form the therapeutically active molecule when the respective targets are in proximity on the cancer cells, effectively creating a 'safety switch' that prevents the therapies from causing off-target side effects.
According to Veraxa, T-cell-engaging bispecific molecules represent a significant share of all antibody therapies currently in development, but side effects and unfavourable product characteristics continue to limit their widespread use.
The biotech – which was incubated by Swiss investment group Xlife Sciences – is also planning an additional financing round to top up its cash reserves even further as it works towards bringing its BiTAC candidates out of the discovery phase.
It currently has three BiTAC programmes in development, including two focused on lung and pancreatic cancer, while a third is targeting ovarian and breast cancer. Two of the three are expected to start clinical testing within the next three years, with the aim of reaching phase 2 trials by 2030.
Meanwhile, Veraxa is also hoping to announce partnerships with biopharma companies for other programmes in the next few years, with some already under negotiation, according to chief executive Christoph Antz.
"Our platform technologies can be applied to empower multiple therapeutic strategies spanning next-generation antibody-drug conjugates, bi-specific immune cell engagers, and potentially even radiopharmaceuticals," said Antz.
"Side effects are too often limiting today's cancer therapies and block doctors from applying optimal dose levels," he added. "Our latest platform innovation, the BiTAC format, is designed to specifically address this issue and create first-in-class drug candidates with unprecedented safety and efficacy."
Biotech companies' use of the SPAC route to public listing through mergers with so-called 'blank cheque' companies rose to prominence in recent years as an alternative to the conventional initial public offering (IPO) route.
It can be a quicker, simpler, and cheaper process, with less scrutiny of a company's finances, liabilities, and operational processes before listing, although, greater scrutiny of the SPAC category by the US Securities and Exchange Commission (SEC) reduced their popularity as IPO numbers started to recover from a recent slump.
The transaction is expected to complete in the fourth quarter of the year, with Veraxa planning to start trading on the Nasdaq under the VERX symbol.
https://pharmaphorum.com/news/swiss-biotech-veraxa-vaults-nasdaq-listing-spac-deal
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