Bullish indicating open at $55-$60, IPO prices at $37
NEW HAVEN, Conn. - Rallybio Corporation (NASDAQ:RLYB), a clinical-stage biotechnology company currently trading near $0.34 per share, has agreed to sell its interest in REV102, a preclinical ENPP1 inhibitor for hypophosphatasia (HPP), to joint venture partner Recursion Pharmaceuticals for up to $25 million. According to InvestingPro data, the company’s stock has declined over 73% in the past year, making this deal particularly significant for its future prospects.
The deal includes an upfront equity payment of $7.5 million, which Rallybio said will help extend its cash runway into mid-2027. The company is also eligible to receive a $12.5 million contingent equity payment upon initiation of additional preclinical studies and a $5 million milestone payment when Phase 1 clinical dosing begins. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 14.68, indicating robust short-term financial health. For deeper insights into Rallybio’s financial position and 10+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.
REV102, which entered IND-enabling studies in early 2025, is being developed as the first potential oral disease-modifying treatment for HPP, a rare genetic disorder that affects bone development. While the company holds more cash than debt on its balance sheet, analysts tracked by InvestingPro do not anticipate profitability this year, making strategic asset management crucial for long-term success.
"Divesting this preclinical asset enables us to extend our cash runway while sharpening our focus on strategically advancing our pipeline in ways that leverage our drug development expertise," said Stephen Uden, Chief Executive Officer of Rallybio, in the press release statement.
The program originated from a joint venture between the two companies that combined Rallybio’s expertise in HPP research with Recursion’s AI platform. Under the agreement, Rallybio will also receive low single-digit royalties on future net sales and may be eligible for additional payments if Recursion sells the program.
Rallybio is maintaining focus on its lead program, RLYB116, a C5 inhibitor being developed for immune platelet transfusion refractoriness and refractory antiphospholipid syndrome, with topline data from an ongoing confirmatory study expected later this year.
The company’s pipeline also includes RLYB332, a preclinical long-acting matriptase-2 antibody for diseases of iron overload.
In other recent news, Rallybio Corporation has initiated dosing in a Phase 1 study of its C5 inhibitor, RLYB116. This study aims to evaluate the drug in healthy volunteers over a four-week period, with results from the first cohort expected in the third quarter of 2025. In addition to this development, Rallybio held its annual shareholder meeting, where Martin W. Mackay and Paula Soteropoulos were elected to the Board of Directors, and Deloitte and Touche LLP was ratified as the independent auditor.
Analyst firms have recently adjusted their ratings for Rallybio. Citizens JMP downgraded the company from "Market Outperform" to "Market Perform" following the discontinuation of its FNAIT program. Evercore ISI also downgraded Rallybio’s stock from "Outperform" to "In Line" due to concerns with recent study data. Despite these downgrades, Citizens JMP noted that the Phase 1 data for RLYB116, expected in late 2025, might renew investor interest. These developments come as Rallybio shifts its focus to RLYB116 after halting its lead FNAIT program.
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