Rallybio agreed to merge with Avenzo Therapeutics in a new reverse merger after a previous Candid Therapeutics deal was derailed by UCB’s $2 billion buyout. Under the agreement, Avenzo shareholders are set to control 97.2% of the combined company and the companies plan to raise $215 million from new and existing investors. The financing is expected to fund operations into late 2028 and supports four Phase 1 programs, including ex-China rights to CDK2 and CDK4 inhibitors and two bispecific antibody-drug conjugates. Avenzo previously shared Phase 1 data for AVZO-021 in HR-positive, HER2-negative breast cancer, reporting a median progression-free survival of 5.3 months across monotherapy doses. The transaction highlights how clinical-stage biotechs are reconfiguring capital strategies to maintain runway and progress early oncology assets amid shifting deal outcomes.