CAMBRIDGE, MA & MALVERN, PA — Galera Therapeutics, Inc. (OTC: GRTX) and Obsidian Therapeutics, Inc. recently entered into a definitive agreement to merge in an all-stock transaction, with the combined company to operate as Obsidian Therapeutics, Inc. and focus on developing engineered cell therapies for solid tumors.
The companies said the transaction is supported by $350 million in committed private placement financing from new and existing investors, which is expected to fund operations into the second half of 2028 and support multiple clinical milestones.
Obsidian’s lead product candidate, OBX-115, is currently in a Phase 2 trial for advanced melanoma and a Phase 1 trial for non-small cell lung cancer. The companies said data from the lung cancer trial is expected in the first half of 2027, with melanoma data anticipated by year-end 2027.
The merger will result in both companies becoming wholly owned subsidiaries of a newly formed entity that plans to list on Nasdaq under the ticker symbol “OBX,” subject to approval.
Under the terms of the agreement, existing Obsidian stockholders are expected to own about 53.2% of the combined company, investors in the financing about 45.0%, and existing Galera stockholders about 1.8%, subject to adjustment.
Galera stockholders will also receive contingent value rights tied to potential future milestone payments related to a 2025 asset sale agreement with Biossil.ai, covering up to 95% of proceeds for up to 10 years.
The combined company will be led by Obsidian CEO Dr. Madan Jagasia, with Obsidian’s board expected to serve as the board of the new entity.
“This transaction and the support from leading life sciences investors will allow us to advance our development plans for OBX-115,” Jagasia said.
Galera CEO Dr. J. Mel Sorensen said the deal “is the best path forward for Galera” and provides shareholders exposure to near-term clinical milestones.
The transaction has been approved by both companies’ boards and is expected to close by the third quarter of 2026, pending shareholder approvals, regulatory filings with the U.S. Securities and Exchange Commission, and other customary conditions.
Leerink Partners is serving as financial advisor to Obsidian, while multiple firms, including TD Cowen and Piper Sandler, are acting as placement agents for the financing. Sidley Austin LLP is serving as legal counsel to Galera.
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