Neurogene and Neoleukin Announce Merger

Neurogene Inc. and Neoleukin Therapeutics, Inc. announced on July 18, 2023 their definitive merger agreement to combine the companies. After the completion of the merger, the company is expected to operate under the name “Neurogene Inc.,” according to the press release.

In addition to merging, Neurogene announced an oversubscribed US$95 million private financing led by new and existing institutional investors. Further, the combined company is expected to have approximately US$200 million in cash or cash equivalents immediately following closing. According to the press release, the merger and concurrent private financing are expected to close in the fourth quarter of 2023.

“We are excited to announce our planned merger with Neoleukin, which we believe is a transformative step forward in our mission to bring life-changing genetic medicines to the patients and families impacted by devastating neurological diseases,” said Rachel McMinn, PhD, founder and chief executive officer of Neurogene, in a press release. “This transaction is expected to bolster our ability to progress our differentiated pipeline, including our clinical-stage program in Rett syndrome which contains our novel, proprietary EXACT technology. We believe EXACT represents a meaningful technological advance for the gene therapy field, allowing us to develop therapeutic product candidates for complex diseases with attractive market opportunities not addressable with conventional gene therapy. This capital will also support our internal manufacturing capabilities, which we expect will continue to provide significant financial and strategic flexibility. With cash on hand at the close of this transaction expected to fund operations into the second half of 2026, we believe we are well positioned to successfully execute beyond multiple anticipated clinical inflection points for both Rett syndrome and Batten disease, and advance our discovery stage pipeline.”

Donna Cochener, interim chief executive officer and general counsel of Neoleukin, added that the merger with Neurogene reflects the company’s commitment to improve patients’ lives. “Neurogene has an innovative genetic medicines portfolio, in-house product design and manufacturing capabilities, an impressive management team, and will be well positioned to deliver multiple data readouts in the next 18 to 24 months,” she said in a press release. “We are grateful to our current and former employees who contributed to Neoleukin’s efforts and look forward to the combined company’s continued progress and success.”

Source: Neurogene