Clinical biopharma Fulcrum Therapeutics has announced it will merge with the biotech company Slate Medicines in an all-stock deal.
The resulting entity will trade as Slate Medicines and focus on advancing Slate's pipeline of potentially best-in-class therapeutics, including SLTE-1009, a subcutaneous monoclonal antibody currently in development for migraine and other headache disorders.
Fulcrum — whose shares rose about seven per cent in premarket trading after the news broke — is looking to rebuild its pipeline after discontinuing the development of pociredir, an oral treatment for sickle cell disease, last month.
The FDA had flagged potential cancer risks with use of the drug, leaving the company with no viable regulatory pathway.
The company announced it would restructure to "significantly reduce" its expenses after discontinuing the drug, axing 85% of its staff in June and leaving just nine full-time employees.
The new Slate Medicine has also secured commitments for $245m from a syndicate of leading healthcare investors led by Frazier Life Sciences and including participation from Forbion, RA Capital Management, Deep Track Capital, Foresite Capital, OrbiMed, RTW Investments and Mingxin Capital
It said the financing and existing cash are expected to fund operations into 2029, advance SLTE-1009 through mid-stage development in migraine and support the broader pipeline.
In the merger, Slate investors are anticipated to hold approximately 95% of the combined company, while Fulcrum shareholders are expected to own around five per cent.
“Migraine remains one of the most prevalent and disabling neurological diseases, yet millions of patients continue to be underserved by existing therapies,” said Gregory Oakes, CEO of Slate Medicines.
This merger and the related financing are expected to provide the resources to advance SLTE-1009, along with the rest of our pipeline, through potentially meaningful clinical milestones.
“Following our evaluation of strategic alternatives, we are pleased to announce this transaction with Slate, which we believe represents the best path forward for our stockholders and a compelling opportunity to participate in the development of a portfolio of next-generation migraine therapeutics," added Alex C. Sapir, Fulcrum’s President and CEO.
The merger is projected to conclude in the fourth quarter of 2026.
