In a significant consolidation within the biotechnology sector, Alumis and Acelyrin have announced their merger in an all-stock transaction that creates a well-capitalized clinical-stage biopharmaceutical company. The deal, announced Thursday, will provide the combined entity with a $737 million cash position, extending operational runway into 2027.
Under the terms of the agreement, Acelyrin stockholders will receive 0.4274 shares of Alumis stock for each share owned, resulting in a 45-55 ownership split between Acelyrin and Alumis shareholders, respectively. The merged company will retain the Alumis name and leadership team.
Strategic Portfolio Focus
The combined company's pipeline will be anchored by Alumis's two TYK2 inhibitors. The lead candidate, ESK-001, is currently being evaluated in a Phase 3 trial for plaque psoriasis and a mid-stage study for lupus, with data expected next year. The second candidate, A-005, targets neuroinflammatory conditions and is undergoing Phase 2 testing in multiple sclerosis.
"We believe that scale and diversity of the portfolio is extremely important, and sufficient capital is critical," stated Martin Babler, Alumis CEO, during an analyst call discussing the merger.
Market Context and Challenges
Both companies entered the merger amid challenging market conditions. Acelyrin, which raised $540 million in its 2023 IPO, and Alumis, which secured $250 million in its 2024 public offering, have seen significant declines in their market valuations. Acelyrin's shares were trading below $2 prior to the merger announcement, while Alumis's stock had decreased approximately two-thirds from its IPO price.
The merger comes at a time of increasing competition in the oral autoimmune therapy space. Bristol Myers Squibb's Sotyktu, the only approved TYK2 inhibitor, has faced commercial challenges. However, Alumis maintains that ESK-001 could demonstrate superior efficacy compared to Sotyktu.
Future of Lonigutamab Program
A key aspect of the merger involves Acelyrin's thyroid eye disease drug, lonigutamab. While previously positioned as a more convenient alternative to Amgen's Tepezza, the program will undergo strategic review to "confirm its differentiation in a capital efficient manner." According to Leerink Partners analyst Thomas Smith, significant near-term investment in lonigutamab is not expected.
Financial Implications
The merger represents what analysts describe as a "creative and capital efficient transaction" that addresses potential financing concerns while providing resources for crucial clinical readouts. The combined cash position of $737 million significantly strengthens the company's ability to advance its pipeline programs.
The transaction is expected to close in the second quarter, subject to customary closing conditions and shareholder approval.
