Shares of biopharmaceutical company Neoleukin Therapeutics experienced a surge in premarket trading on Tuesday following the announcement of an all-stock reverse merger with privately held genetic-medicines company Neurogene. Under the agreement, shareholders of Neoleukin will retain approximately 16% ownership in the combined company.
The primary focus of the newly merged entity will be advancing Neurogene’s portfolio of genetic medicines for complex neurological diseases. The completion of the deal is expected to provide the combined company with a cash balance of approximately $200 million. This sum includes around $95 million from a concurrent private financing secured by new and existing Neurogene investors, ensuring a secure financial runway into the second half of 2026.
Utilizing a reverse merger strategy enables a private company to go public by merging with a listed company while significantly reducing the associated costs compared to a traditional initial public offering (IPO).
Following the merger, the combined company intends to operate under the name Neurogene and trade on the Nasdaq Capital Market using the symbol NGNE.
Neoleukin shares closed at 92.5 cents on Monday and have recently surged by 12% to $1.04 in premarket trading.
