UCB's $2.2B acquisition of Candid Therapeutics triggers merger termination fee for Rallybio

 

UCB announced on May 3, 2026, that it signed a definitive agreement to acquire Candid Therapeutics for $2 billion upfront plus up to $200 million in milestones. This superior offer ends the pending all-stock reverse merger between Rallybio and Candid (announced March 2, 2026), under which Rallybio shareholders would have owned only ~3-4% of the combined entity operating as Candid Therapeutics (new ticker expected CDRX). The original merger agreement provides Rallybio with a substantial termination/breakup fee—reported around $50 million—representing a major windfall relative to its ~$50 million market cap (post-February 2026 1-for-8 reverse split). With only a few million shares outstanding, this cash infusion plus any contingent value rights tied to legacy assets drove aggressive buying in premarket trading. The move builds directly on the March merger announcement and February positive RLYB116 Phase 1 data, but the UCB deal is the immediate, verifiable catalyst.

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