BridgeBio Oncology Secures $450M SPAC Deal to Advance KRAS Inhibitor Pipeline

Key Insights

• BridgeBio Oncology merges with Helix Acquisition Corp. II in a $450M SPAC deal, securing $196M from trust account and $260M in PIPE financing led by Cormorant Asset Management.
• The company's lead program BBO-8520 is advancing in Phase I ONKORAS-101 trial for KRASG12C mutant non-small cell lung cancer, alongside two other clinical-stage oncology programs.
• Post-merger entity, valued at $949M, will trade as BBOT with access to approximately $550M cash to accelerate development of its targeted cancer therapy portfolio.

In a surprising turn of events for the biotech financing landscape, BridgeBio Oncology Therapeutics has announced its path to going public through a $450 million special purpose acquisition company (SPAC) merger with Helix Acquisition Corp. II. The deal, announced Friday, marks a significant milestone for the cancer-focused spinout from BridgeBio.

The transaction structure includes $196 million from Helix's trust account and a substantial $260 million in private investment in public equity (PIPE) financing. Cormorant Asset Management leads the PIPE investment, with participation from notable healthcare investors including Deerfield Management Company and Novo Holdings.

Strategic Pipeline Development

BridgeBio Oncology, which launched in May 2024 with $200 million in initial funding, is advancing a sophisticated pipeline of targeted cancer therapies. The company's lead asset, BBO-8520, is currently being evaluated in the Phase Ia/Ib ONKORAS-101 trial, targeting patients with KRASG12C mutant non-small cell lung cancer.

The company's robust clinical program also includes BBO-10203, under investigation in the BREAKER-101 Phase I trial. This study encompasses multiple indications including locally advanced and unresectable or metastatic HER2+ breast cancer, HR+/HER2- breast cancer, KRAS mutant colorectal cancer, and KRAS mutant non-small cell lung cancer. Additionally, BBO-11818, the company's third program, is scheduled to begin clinical dosing in the first half of this year.

Financial Impact and Future Outlook

The merger is expected to close in the third quarter, creating a combined entity valued at $949 million. Trading under the symbol BBOT, the new BridgeBio Oncology will have access to approximately $550 million in cash, a significant increase from its current $100 million reserves.

This substantial capital infusion positions BridgeBio Oncology to accelerate the development of its oncology portfolio, particularly its promising KRAS inhibitor programs. The company's focus on precision medicine approaches in cancer treatment, especially targeting KRAS mutations, addresses significant unmet needs in oncology therapeutics.