In a strategic move aimed at transforming the treatment landscape for chronic skin diseases, ARCA biopharma, Inc. and Oruka Therapeutics have agreed to a merger, focusing on advancing novel biologics for conditions such as plaque psoriasis. Here’s a concise overview of the key points from the merger announcement:
- Merger Overview: ARCA biopharma and Oruka Therapeutics are merging in an all-stock transaction. The combined entity will be named Oruka Therapeutics, Inc., and will list on Nasdaq under the ticker “ORKA”.
- Lead Programs: The merger will accelerate the development of Oruka’s leading antibodies, ORKA-001 and ORKA-002, targeting IL-23p19 and IL-17A/F. These programs aim to enter clinical trials in 2025 and offer a new standard of care for psoriasis and related conditions.
- Financial Backing: Oruka has secured $275 million in private financing to support operations through 2027. This funding is expected to cover the initial clinical development of ORKA-001 and ORKA-002.
- Operational Goals: With the merger, Oruka plans to expand its operational capabilities and efficiently progress its lead programs into clinical development, aiming to significantly improve the treatment of chronic skin diseases.
- Scientific Advisory: Dr. Andrew Blauvelt, a renowned expert in psoriasis, supports Oruka’s mission. He emphasizes the potential of Oruka’s lead programs to offer greater efficacy, reduced dosing frequency, and enhanced disease control based on the principles of stronger IL-23 inhibition.
- Shareholder Distribution: Post-merger, ARCA’s stockholders are expected to own approximately 2.38% of the new company, with Oruka’s stakeholders owning the rest. ARCA will contribute $5 million to the new entity and plans to distribute a cash dividend to its pre-merger stockholders.
- Closing Conditions: The merger’s completion is subject to approval from both companies’ stockholders, regulatory approvals, and other customary closing conditions, with an anticipated close in the third quarter of 2024.
- Leadership and Governance: The merged company will be led by Lawrence Klein, PhD, as CEO, with a board comprising notable figures from the biotech and investment sectors.
This merger represents a focused strategy to leverage advanced biologics for improving the lives of patients with chronic skin conditions, combining financial, technological, and scientific resources for a potent approach to disease management.