Alumis and ACELYRIN announce merger in all-stock deal

SOUTH SAN FRANCISCO, Calif. - Alumis Inc. (NASDAQ: ALMS), currently valued at $388 million and trading near its 52-week low of $6.29, and ACELYRIN, INC. (NASDAQ: SLRN) have entered into a definitive merger agreement, the companies announced today. The all-stock transaction will result in Alumis stockholders owning approximately 55% and ACELYRIN stockholders owning about 45% of the combined entity on a fully diluted basis. According to InvestingPro analysis, Alumis enters this merger with strong liquidity, maintaining a healthy current ratio of 11.26.

The merger is aimed at creating a biopharmaceutical powerhouse with a focus on developing treatments for immune-mediated diseases. Alumis brings to the table its precision approach to clinical outcomes, with its most advanced product candidate, ESK-001, an oral inhibitor for plaque psoriasis and systemic lupus erythematosus, expected to have Phase 3 topline data by the first half of 2026 and Phase 2b topline data in the same year, respectively. ACELYRIN adds lonigutamab, a potential best-in-class treatment for thyroid eye disease, to the combined company’s portfolio.

The pro forma cash position of approximately $737 million as of December 31, 2024, is expected to provide the merged company with the financial runway into 2027, beyond multiple clinical readouts. InvestingPro data shows Alumis currently holds more cash than debt on its balance sheet, though the company has been rapidly utilizing its cash reserves for operations.

Martin Babler, President, CEO, and Chairman of Alumis, expressed confidence in the merger’s ability to drive value for stockholders, citing the expanded late-stage pipeline and the financial flexibility the merger will provide. Mina Kim, CEO of ACELYRIN, echoed this sentiment, highlighting the complementary nature of the two companies’ pipelines and expertise.

The transaction, which is expected to close in the second quarter of 2025, is subject to customary closing conditions and approval by the stockholders of both companies. Stockholders representing a majority of Alumis voting common stock and a significant minority of ACELYRIN common stock have entered into voting agreements supporting the transaction.

Upon closing, the combined company will operate under the Alumis name and will be led by the current Alumis executive team. The Board of Directors will expand to include two additional directors from ACELYRIN’s Board. The headquarters will remain in South San Francisco.

This strategic move is expected to enhance the development and commercial capabilities of the combined company, leveraging a robust pipeline to address a broad range of immune-mediated diseases. Based on InvestingPro Fair Value analysis, Alumis appears undervalued heading into this merger, with analysts setting price targets significantly above current trading levels. Subscribers to InvestingPro can access 8 additional key insights about Alumis’s financial health and growth prospects.

The information regarding the merger is based on a press release statement.

In other recent news, Alumis Inc. has been the subject of several recent developments. Oppenheimer initiated coverage on Alumis with an Outperform rating and a price target of $32.00, citing the company’s focus on developing oral solutions for inflammatory and autoimmune disorders and the potential of its clinical pipeline. Alumis’s lead product candidate, ESK-001, has shown promising results in a Phase 2 psoriasis study and is expected to generate multi-billion dollar revenues if approved.

Moreover, Alumis has strengthened its leadership team as it prepares for late-stage development and commercialization of its drug pipeline. This includes the promotion of Sara Klein to Chief Legal Officer and the appointment of Jack Danilkowicz as Chief Commercial Officer.

H.C. Wainwright reaffirmed a Buy rating and a $26.00 price target on Alumis, following recent developments in the psoriatic arthritis treatment market. The firm believes that Alumis’s ESK-001 has a highly superior profile with the potential to surpass the market share of current TYK2 inhibitors.

In another development, Alumis announced the successful completion of a Phase 1 clinical trial for its drug candidate A-005, a TYK2 inhibitor intended to treat multiple sclerosis. The drug was well tolerated and showed significant CNS penetration, supporting its advancement to a Phase 2 clinical trial.

Lastly, Alumis updated the estimated primary and study completion dates for its Phase 2 LUMUS clinical trial, which is evaluating the efficacy, safety, and pharmacokinetics of ESK-001 in adult patients with systemic lupus erythematosus. These are some of the recent developments at Alumis Inc.

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