Aug 17 (Reuters) – Fulcrum Therapeutics said on Monday it would merge with privately held Slate Medicines in an all-stock deal, as the biotech looks to rebuild its pipeline after it discontinued development of its lead drug candidate last month.
Fulcrum shares rose about 7% in premarket trading.
Here are some details:
• The deal gives Fulcrum access to Slate’s experimental antibody drug, SLTE-1009, being developed to prevent migraine and other headache disorders.
• Fulcrum last month discontinued development of pociredir, an oral treatment for sickle cell disease, after the U.S. Food and Drug Administration flagged potential cancer risks, leaving the company with no viable regulatory pathway for the drug.
• The combined company will operate as Slate Medicines and trade on Nasdaq under the ticker “SLTE,” the companies said.
• Slate has also secured commitments for a $245 million private placement led by Frazier Life Sciences, with participation from investors including RA Capital Management, OrbiMed, RTW Investments, Forbion, Deep Track Capital and Foresite Capital.
• Slate 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.
• Fulcrum has since slashed its workforce by 85%, leaving nine employees from 57, as part of a restructuring expected to be completed by the second quarter.
• As part of the merger, Slate investors are expected to own about 95% of the combined company, while Fulcrum shareholders are expected to own about 5%.
• The merger is expected to close in the fourth quarter of 2026.
(Reporting by Sahil Pandey in Bengaluru; Editing by Tasim Zahid)
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