Aeglea BioTherapeutics buys Spyre Therapeutics to revolutionize IBD treatment
Aeglea BioTherapeutics, a Nasdaq-listed company, has acquired Spyre Therapeutics, a private biotech company dedicated to advancing a promising pipeline of antibody therapeutics aimed at revolutionizing inflammatory bowel disease (IBD) treatment.
Spyre Therapeutics, based in Waltham, Massachusetts, was created by Fairmount and spun out of Paragon Therapeutics in 2023. It brings innovative solutions to the table, including best-in-class antibody engineering and precision immunology strategies to increase the efficacy, safety, and convenience of inflammatory bowel disease treatments.
In tandem with the acquisition, Aeglea BioTherapeutics has finalized a definitive agreement for the sale of Series A non-voting convertible preferred stock in a private placement to a group of institutional accredited investors. This includes prominent names like Fairmount Funds Management, Fidelity Management & Research Company, Venrock Healthcare Capital Partners, and many others.
This private placement is expected to yield gross proceeds of approximately $210 million for Aeglea BioTherapeutics before deducting expenses associated with the placement agent and offering. The funds will be used to push forward Spyre Therapeutics’ potentially best-in-class inflammatory bowel disease products portfolio and are projected to finance operations until 2026.
Jonathan D. Alspaugh — Aeglea BioTherapeutics President and Chief Financial Officer said: “Our management and our Board of Directors thoroughly explored numerous strategic alternatives and believe this acquisition of Spyre provides a phenomenal outcome for our stockholders.
“Spyre’s approach to therapeutics development aims to transform the current treatment experience for individuals living with IBD. The company is making rapid progress advancing their two parallel lead programs into the clinic, and we believe these programs will enable us to capture a sizable share of the growing IBD market.”
Inflammatory bowel disease, a condition that results in chronic inflammation of the digestive tract, affects about 1.7 million patients in the United States. Spyre Therapeutics is working on a robust portfolio that capitalizes on both proven and novel mechanisms of action to address IBD. Its two main lead programs—SPY001 and SPY002—are set to enter clinical studies in 2024, with clinical data for SPY001 expected by the end of the same year.
This acquisition was set up as a stock-for-stock transaction where all Spyre Therapeutics’ outstanding equity interests were exchanged for 13,013,636 shares of Aeglea BioTherapeutics’ common stock and 364,889 shares of Series A preferred stock. Concurrently, Aeglea BioTherapeutics has entered into a definitive agreement for a PIPE investment to raise $210 million.
Post-acquisition, Aeglea BioTherapeutics’ stockholders prior to the deal will own approximately 5.48% of the company on an as-converted basis.
Cameron Turtle — newly appointed Chief Operating Officer of Aeglea BioTherapeutics said: “The concurrent launch of Spyre and acquisition by Aeglea will provide immediate access to the public capital markets and the opportunity to accelerate research and development efforts for our broad pipeline of biologics.
“A continued unmet need exists for novel therapeutics that improve both efficacy and convenience for patients suffering from inflammatory bowel disease. We appreciate the support of this outstanding investor syndicate and their confidence in Spyre’s approach to develop transformative treatments for this chronic condition.”