NEW HAVEN, Conn. & SAN DIEGO — March 2, 2026
Rallybio Corporation and Candid Therapeutics announced a definitive merger agreement that will create a new biotechnology company focused on advancing next-generation T-cell engager (TCE) therapeutics for autoimmune diseases. The combined company will operate under the name Candid Therapeutics, Inc. and is expected to trade on Nasdaq under the ticker CDRX, forming a well-capitalized organization dedicated to developing innovative immune-modulating therapies for patients with serious autoimmune conditions. The transaction is supported by more than $505 million in new financing from leading healthcare investors and is expected to fund the company’s operations through 2030 while accelerating clinical development programs.
Strategic Merger Strengthens Autoimmune Drug Pipeline
The merger combines Rallybio’s clinical development capabilities with Candid’s expanding portfolio of T-cell engager therapeutics, creating one of the most advanced pipelines targeting autoimmune diseases. T-cell engager (TCE) therapies represent a promising new class of immunotherapies designed to direct the body’s immune system to eliminate disease-causing immune cells.
The newly formed company will focus on advancing multiple drug candidates targeting B-cells and plasma cells that play a critical role in autoimmune disease progression. One of the most promising candidates in the pipeline is cizutamig, a BCMA-targeting T-cell engager designed to selectively eliminate disease-driving immune cells while maintaining tolerability. Early clinical data from studies involving 87 patients suggest the therapy has demonstrated favorable safety and low cytokine release syndrome (CRS) rates, a key challenge for many immunotherapies.
Researchers believe the approach could provide deeper and more durable immune cell depletion compared with existing therapies used to treat autoimmune disorders such as myasthenia gravis and inflammatory lung diseases. If successful, these treatments may represent first-in-class or best-in-class therapies in a rapidly growing therapeutic area.
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Major Financing Supports Clinical Trials Through 2030
The merger includes a significantly oversubscribed financing round exceeding $505 million, backed by a syndicate of prominent institutional investors including healthcare venture capital firms and global asset managers. The capital infusion is expected to provide the combined company with approximately $700 million in pro-forma cash, giving it the financial strength to advance several clinical programs simultaneously.
The financing will allow the company to support multiple clinical milestones, including the initiation of global Phase 2 trials for cizutamig in 2026 targeting autoimmune conditions such as myasthenia gravis and interstitial lung disease associated with rheumatological disorders.
The pipeline also includes additional promising therapies such as CND261, a CD20-targeting TCE that has already been administered to more than 100 patients across oncology and autoimmune studies, and CND319, a dual CD19/CD20 targeting therapy expected to enter first-in-human trials in 2026. Together these candidates aim to create a broad platform of immune-modulating biologics capable of addressing numerous autoimmune conditions.
Leadership and Vision for Next-Generation Immunotherapy
Following completion of the transaction, the combined company will be led by Dr. Ken Song, Chairman, President, and Chief Executive Officer of Candid Therapeutics. The leadership team will bring extensive expertise in clinical drug development, immunology, and global biotechnology operations, positioning the company to rapidly advance its therapeutic portfolio.
Executives from both companies emphasize that the merger creates a unique opportunity to develop a diversified pipeline of T-cell engager therapies, potentially transforming treatment approaches for autoimmune diseases where current options remain limited. The company’s long-term strategy includes expanding its platform to explore additional immune cell targets, new indications, and next-generation biologic therapies.
Industry analysts believe the merger reflects a broader trend in biotechnology toward combining scientific platforms, capital resources, and clinical expertise to accelerate development of complex immune-targeting drugs. As autoimmune diseases continue to affect millions of patients worldwide, innovative therapies capable of precisely modulating immune responses are becoming a major focus of pharmaceutical research.
If successful, the Rallybio–Candid merger could establish a new leader in autoimmune immunotherapy development, with multiple clinical programs and significant financial backing to bring innovative treatments to patients over the coming decade.
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Source: Rallybio–Candid press release
