Galera Therapeutics, Inc. (GRTX), a clinical-stage biopharmaceutical company developing a pan-NOS inhibitor for advanced breast cancer, has agreed to merge with privately held Obsidian Therapeutics, Inc., a developer of engineered tumor-infiltrating lymphocyte (TIL) cell therapies.
The combined company will operate as Obsidian Therapeutics, Inc. and plans to list on Nasdaq under the ticker "OBX".
Obsidian's lead candidate, OBX-115, is a genetically engineered, autologous TIL therapy currently in a Phase 2 trial for advanced melanoma and a Phase 1 trial for non-small cell lung cancer (NSCLC). The therapy uses Obsidian's cytoDRiVE protein-regulation platform and is designed to improve TIL persistence, eliminate the need for high-dose IL-2, and enable outpatient administration.
$350 Million Private Placement
Alongside the merger, the companies secured commitments for $350 million oversubscribed private placement, expected to close immediately before the merger. Investors include Balyasny Asset Management, Caligan Partners LP, Eventide Asset Management, Redmile Group, RA Capital, RTW Investments, Novo Holdings, and others, with participation from existing Obsidian backers.
The combined company's cash position at closing-bolstered by the financing-is expected to fund operations into the second half of 2028, supporting multiple clinical milestones:
-Topline results from the ongoing Phase 1 trial in non-small cell lung cancer are expected in the first half of 2027. -By year-end 2027, Obsidian expects topline data from its melanoma registration-enabling trial. This study is designed to support potential future regulatory discussions for OBX-115 in patients with advanced melanoma resistant to immune checkpoint inhibitors. OBX-115 has already received Fast Track and RMAT designations from the FDA for this population.
Terms of the Transaction
Under the merger agreement:
-Pre-closing Galera stockholders (excluding those in the private placement) are expected to own approximately 1.8% of the combined company.
-Pre-closing Obsidian stockholders are expected to own approximately 53.2% of the combined company.
-Private placement investors are expected to own approximately 45.0% of the combined company.
Galera stockholders will also receive a contingent value right (CVR) tied to 95% of future milestone payments arising from Galera's 2025 asset sale to Biossil.ai, with a term of up to 10 years.
The boards of both the companies have approved the transaction, which is expected to close by the third quarter of 2026, pending shareholder approvals, SEC registration effectiveness, and customary closing conditions.
Leadership and Governance
The combined company will be led by Madam Jagasia, M.D., current CEO of Obsidian. Obsidian 's existing board will transition to lead the combined entity, chaired by Maria Fardis, Ph.D., M.B.A.
Leerink Partners is serving as exclusive financial advisor to Obsidian, with Goodwin Procter LLP as legal counsel. Sidley Austin LLP is advising Galera, and Lucid Capital Markets is providing a fairness opinion.
GRTX has traded between $0.015 and $0.15 over the past year. The stock closed Tuesday's trading at $0.07, up 92.44%.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.