Quince Therapeutics Acquires Orphai for $187M to Advance Inhaled Rapamycin Pipeline for Rare Pulmonary Diseases
Key Insights
Quince Therapeutics acquired Orphai Therapeutics (search) and secured up to $187 million in financing to advance LAM-001, an inhaled rapamycin formulation targeting multiple rare pulmonary diseases.
LAM-001 demonstrated promising Phase 2a data in pulmonary hypertension associated with interstitial lung disease (search), with a Phase 2b trial planned for mid-2026 and results expected in Q1 2028.
The acquisition brings three clinical programs targeting approximately 274,000 patients across the U.S. and Europe, including PH-ILD, bronchiolitis obliterans syndrome (search), and sarcoidosis-associated pulmonary hypertension (search).
Quince Therapeutics has completed its acquisition of Orphai Therapeutics (search) for up to $187 million in a transaction that significantly expands the company's rare disease pipeline with LAM-001, a novel inhaled formulation of rapamycin designed to treat multiple pulmonary conditions. The deal, announced May 18, 2026, includes $115 million in upfront financing with potential for an additional $72 million through warrant exercises.
The acquisition centers on LAM-001, a once-daily inhaled sirolimus formulation that targets the mTOR (search) pathway to address pulmonary arterial smooth muscle cell proliferation and fibrosis. According to the companies, new Phase 2a data presented at the American Thoracic Society conference demonstrated encouraging results in pulmonary hypertension associated with interstitial lung disease (search) (PH-ILD).
Clinical Pipeline Expansion
LAM-001's mechanism of action positions it as a potential disease-modifying therapy across multiple pulmonary indications. The drug inhibits mTOR (search)-mediated pulmonary arterial smooth muscle cell proliferation, a pathway shown to be activated in patients with pulmonary hypertension. Preclinical studies demonstrate that mTOR inhibition with rapamycin can reverse smooth muscle cell hyperproliferation and attenuate pulmonary vascular remodeling.
The acquisition brings three distinct clinical programs targeting significant patient populations:
Pulmonary Hypertension Associated with Interstitial Lung Disease (search) (PH-ILD): Affecting approximately 86,000 patients in the U.S. and 120,000 in Europe, this progressive condition is characterized by declining lung function and exercise capacity. A Phase 2b trial is planned for mid-2026 initiation with data anticipated in Q1 2028.
Bronchiolitis Obliterans Syndrome (search) (BOS): This serious post-lung transplant complication affects an estimated 17,000 U.S. patients and 11,000 European patients. A Phase 2 study is ongoing with results expected in Q1 2027.
Sarcoidosis-Associated Pulmonary Hypertension (search) (SAPH): With no approved therapies, this severe complication affects approximately 60,000 patients across the U.S. and Europe. A Phase 2 study is planned for late 2026 initiation with data expected in Q4 2028.
Strategic Rationale and Market Impact
"We believe the new LAM-001 clinical data, combined with the caliber of the Orphai management team and high quality syndicate of investors in the PIPE, all reinforce the value of this transaction and highlight our strategy to build a focused, high-impact biotechnology company," said Dirk Thye, CEO and CMO of Quince.
Dr. Brigette Roberts, Chief Corporate Affairs Officer of Quince and former CEO of Orphai Therapeutics (search), emphasized the unmet medical need: "Despite recent advances in treatment, PH-ILD remains a progressive condition characterized by declines in lung function and exercise capacity leading to hospitalization, lung transplantation and death."
Financing and Operational Runway
The private placement was led by Balyasny Asset Management (search) with participation from prominent healthcare investors including Affinity Asset Advisors, Coastlands Capital, Columbia Threadneedle Investments, Cormorant Asset Management, Eventide Asset Management, Foresite Capital, Janus Henderson Investors, LifeSci Venture Partners, Logos Capital, Perceptive Advisors, SilverArc Capital, and Woodline Partners.
The combined upfront proceeds and existing cash are expected to fund operations through the end of 2028, supporting multiple clinical milestones across the expanded pipeline. Following the transaction, former Quince equity holders will own approximately 6.9% of the combined company, Orphai equity holders will own 31.9%, and private placement investors will own 61.2% on a fully-diluted basis.
Regulatory and Development Timeline
The acquisition was structured as a stock-for-stock merger with all outstanding Orphai equity interests exchanged for a combination of Quince common stock, Series C non-voting convertible preferred stock, and stock options. The transaction required approval from both companies' boards of directors and Orphai stockholders, with the private placement expected to close May 21, 2026.
LAM-001's inhaled delivery system is designed to enhance pulmonary targeting while reducing systemic exposure, potentially offering advantages over current treatment approaches. The mTOR (search) pathway's role in both vascular remodeling and progressive fibrosis makes it particularly relevant for PH-ILD, where these processes evolve in parallel and amplify pulmonary vascular load.
The transaction positions Quince as a focused pulmonary disease company with a differentiated approach to addressing significant unmet medical needs across multiple rare disease indications.