Galera and Obsidian merge in $350 million all-stock deal

Galera Therapeutics Inc. (OTC: GRTX) and Obsidian Therapeutics Inc. announced a definitive merger agreement to combine in an all-stock transaction, with the combined company operating under the Obsidian Therapeutics name and planning to trade on Nasdaq under ticker symbol "OBX."

The companies secured commitments for a concurrent private placement financing of $350 million from a syndicate of investors including Balyasny Asset Management, Caligan Partners LP, Eventide Asset Management, and Nantahala Capital, among others. The financing is expected to close immediately prior to the merger completion.

Upon closing, pre-closing Galera stockholders are expected to own approximately 1.8% of the combined company, pre-closing Obsidian stockholders about 53.2%, and private placement investors around 45.0%. The combined company's cash balance, including private placement funds, is anticipated to fund operations into the second half of 2028.

Obsidian's lead product candidate, OBX-115, is a genetically engineered autologous TIL cell therapy currently in a Phase 2 clinical trial for advanced melanoma and a Phase 1 trial for non-small cell lung cancer. The company expects Phase 1 NSCLC data in the first half of 2027 and melanoma registration-enabling data by year-end 2027.

Galera stockholders will retain contingent value rights for 95% of future milestones for up to 10 years from its October 2025 Asset Purchase Agreement with Biossil.ai for dismutase mimetics.

The transaction requires approval from stockholders of both companies and other customary closing conditions. Both boards of directors have approved the deal, which is expected to close by the third quarter of 2026. Madan Jagasia, Obsidian's current CEO, will lead the combined company.

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