Obsidian Therapeutics and Galera are merging to form a Nasdaq-listed cell therapy company backed by a $350 million private placement, aiming to advance OBX-115, a next-generation TIL therapy.
Obsidian Therapeutics and Galera Therapeutics agreed to merge in an all-stock transaction backed by $350 million in new financing. The merger is set to create a publicly traded cell therapy company focused on advancing a next-generation tumor infiltrating lymphocyte therapy for melanoma and lung cancer.
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The two companies will become wholly owned subsidiaries of a newly formed combined entity that will operate under the name Obsidian Therapeutics and will apply to trade on Nasdaq under the ticker symbol "OBX."1 The transaction is expected to close by the third quarter of 2026 and is subject to stockholder approvals and customary conditions. Madan Jagasia, Obsidian's current CEO, is set to lead the combined company.1
Supporting the merger is an oversubscribed $350 million private placement from a syndicate of new and existing investors including Balyasny Asset Management, Redmile, RA Capital Management, Novo Holdings, Wellington Management, and others.1 The combined company's cash position is expected to fund operations into the second half of 2028 and through key clinical milestones for Obsidian’s lead asset OBX-115.
At closing, pre-merger Obsidian stockholders are expected to own approximately 53.2% of the combined company, private placement investors approximately 45%, and pre-merger Galera stockholders approximately 1.8%.1
OBX-115 is Obsidian's lead engineered TIL cell therapy, currently in a Phase II trial for advanced melanoma and a Phase I trial for non-small cell lung cancer. It is built on Obsidian's cytoDRIVE platform and is designed to address key limitations of existing TIL therapies.2
Conventional TIL therapies require high-dose interleukin-2, a toxic cytokine administered to help transplanted cells survive, and inpatient lymphodepletion before infusion. OBX-115 incorporates regulatable membrane-bound IL15, which drives TIL persistence and eliminates the need for IL2, enabling outpatient administration with low-dose lymphodepletion.1
The therapy can also be manufactured from tumor tissue obtained through a minimally invasive core needle biopsy rather than a surgical procedure, lowering the procedural burden on patients. FDA has granted OBX-115 both Fast Track and Regenerative Medicine Advanced Therapy designations for unresectable or metastatic melanoma resistant to immune checkpoint inhibitors.2
"At Obsidian, we are striving to deliver a best-in-class TIL cell therapy developed using our proprietary protein-regulation technology," said Madan Jagasia, CEO of Obsidian. "We believe OBX-115 offers an opportunity to provide patients with an improved TIL product and patient experience. This transaction and the support from leading life sciences investors will allow us to advance our development plans for OBX-115 in melanoma and NSCLC."
Key upcoming milestones include Phase I data from the NSCLC trial expected in the first half of 2027 and topline data from the melanoma registration-enabling trial by year-end 2027.
Galera contributes its Nasdaq listing and cash, providing the vehicle for Obsidian to access public markets. Galera stockholders will retain a contingent value right entitling them to 95% of future milestone proceeds for up to ten years from Galera's October 2025 asset purchase agreement with Biossil.ai for its dismutase mimetics program.1
J. Mel Sorensen, CEO of Galera, said: "We believe this transaction with Obsidian is the best path forward for Galera and look forward to the combined company's success. Obsidian's pipeline of novel engineered TIL cell therapies and its promising lead product candidate, OBX-115, offer near-term, value creating milestones for Galera stockholders."
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