Magenta Therapeutics and Dianthus Therapeutics announced a merger to form a company that will advance the latter’s next-generation complement inhibitor pipeline.
The combined company will take on the Dianthus Therapeutics name and focus on its treatments that primarily target autoimmune diseases. That includes DNTH103, a next-generation monoclonal antibody that’s meant to be a less-frequent injection for people with severe autoimmune diseases.
The merger comes at a “pivotal moment in the evolution” of Dianthus, CEO Marino Garcio said in a statement.
“Gaining access to the public capital markets can enhance our financial strength and fuel our growth strategy, enabling us to unlock the full potential of our pipeline, including our plans to address multiple autoimmune disorders with our clinical-stage active C1s inhibitor, DNTH103,” Garcia added.
Once closed, the combined company will be headed by Garcia.
Dianthus noted it has secured $70 million in private investment in common stock as well as pre-funded warrants, expected to close before the merger is completed. The combined company will have $180 million in cash or cash equivalents, extending Dianthus’ pipeline through the middle of 2026.
Steve Mahoney, president and chief financial and operating officer at Magenta, noted in a statement that the merger will “culminate in a successful outcome” for the company’s shareholders.
“Dianthus has made rapid progress in developing and advancing DNTH103 into the clinic where it has the potential to be a transformative classical pathway inhibitor for severe autoimmune diseases,” Mahoney said. “[W]e now look forward to the combined company’s advancement on opportunities for value creation for patients.”
In November, Dianthus announced the first patients were dosed in its Phase I clinical trial for DNTH103. The idea is that DNTH103, which targets the active C1s protein, provides more of a therapeutic effect with a smaller and less frequent dose.
That Phase I trial began months after Dianthus secured $100 million in Series A funding.
The companies said DNTH103 is expected to see top-line Phase I data on potent classical pathway inhibition and pharmacokinetics by the end of the year, with a Phase II trial expected to begin in the first quarter of 2024. The two companies also plan to test the drug in other indications, including in Cold Agglutinin Disease, a type of autoimmune hemolytic anemia.
