Quince Therapeutics announced it will pursue an exit strategy after a phase 3 rare disease setback, agreeing to merge with private pulmonary startup Orphai Therapeutics via a reverse merger. The move follows Quince’s earlier search for strategic alternatives. The transaction reflects the pressure cash-strapped biotechs face after late-stage outcomes miss, with reverse mergers increasingly used to preserve programs and maintain pipeline continuity while restructuring the capital base.