Biotech firm Jade Biosciences Inc. has completed its merger with Aerovate Therapeutics Inc. (Nasdaq:AVTE), in a move that will put the former on the Nasdaq.
Jade’s Vancouver-based CEO, Tom Frohlich, previously helped shepherd B.C.-based Chinook Therapeutics to a US$3.2-billion exit.
Monday’s announcement said the new company will operate under the Jade Biosciences Inc. banner and begin trading on the Nasdaq April 29 under the JBIO ticker symbol.
The announcement said there are approximately 60.6 million shares of common stock combined between both companies if all securities are converted into shares.
Jade develops therapies for autoimmune diseases, while Aerovate is a Massachusetts-based biopharmaceutical company that develops drugs for cardiopulmonary disease.
According to the release, Jade raised around US$300 million from a syndicate of health-care investors led by Fairmount Funds Management LLC, Venrock Management LLC and another large investment firm in the lead up to the merger.
Frohlich said in a statement the strong financial foundation will help advance the development of therapeutics like JADE-001. This is an investigational antibody designed to block a protein known as PRoliferationInducing Ligand (APRIL), which causes autoimmune responses in a kidney disease.
Chinook also specialized in kidney disease treatment.
JADE-001 is expected to enter its first clinical trial in the second half of 2025, said the announcement.
Jade was created from assets of the U.S.-based Paragon Therapeutics Inc., another biotech company focused on therapies for autoimmune diseases.
—With files from Nelson Bennett
