Graybug Vision Agrees To Merge With Inflammatory Disease-Focused Biopharma

  • Graybug Vision Inc GRAY and CalciMedica Inc (CalciMedica) have announced a definitive merger agreement to combine the companies in an all-stock transaction
  • The combined company will further develop CalciMedica's lead product candidate Auxora for inflammatory diseases, such as acute pancreatitis, asparaginase-associated pancreatitis, acute kidney injury, and acute hypoxemic respiratory failure.
  • Auxora, which modulates the immune response and protects against tissue cell injury, has been studied in four completed efficacy clinical trials, demonstrating positive and consistent clinical results and a favorable safety profile.
  • With approximately $35 million in cash and cash equivalents anticipated from the combined company, including a private placement financing expected to occur immediately before the merger closing, the combined company is expected to have a cash runway into the second half of 2024. 
  • The proposed merger is expected to close in the first quarter of 2023.
  • Phase 2b results in acute pancreatitis for lead product candidate Auxora expected in the second half of 2023.
  • Graybug equity holders are expected to own approximately 29% of the combined company, and pre-merger CalciMedica equity holders are expected to own approximately 71% of the combined company.
  • Following the merger, the combined company will be headquartered in La Jolla, California, and Rachel Leheny will serve as Chief Executive Officer of the combined company. 
  • Price Action: GRAY shares are down 30.30% at $0.66 during the premarket session on the last check Tuesday.
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