NextCure skyrockets on merger with Avere, $320 million financing
NXTC•NextCure to merge with Avere Therapeutics in all-stock deal
Shares of biotech firm NextCure NXTC.O almost quadrupled to $8.22 in morning trading after the company said it will merge with privately held Avere Therapeutics in an all-stock deal and operate as Avere Therapeutics after closing.
NextCure also said a concurrent $320 million private financing will fund development of AVR-001, an experimental once-weekly pill for inflammatory diseases.
AVR-001 targets IL-23, a protein linked to conditions including psoriasis, a chronic skin disease that causes scaly patches.
Avere plans to start a mid-stage psoriasis trial in early 2027, with data expected in the first half of 2028.
Pre-merger Avere stockholders, including investors in the financing, are expected to own about 98.8% of the combined company, while NextCure stockholders are expected to own about 1.2%.
Including the session's move, the stock was down about 42% year to date.
