AVROBIO announces merger with Tectonic Therapeutic in significant all-stock deal
AVROBIO, Inc. (Nasdaq: AVRO) and Tectonic Therapeutic, Inc., a biotechnology firm specializing in GPCR (G-protein coupled receptor)-targeted therapeutic proteins, have announced a definitive merger agreement. This all-stock transaction will result in AVROBIO acquiring 100% of Tectonic’s outstanding equity interests, with the merged entity operating under the name Tectonic Therapeutic, Inc. and trading on Nasdaq under the ticker symbol “TECX.”
In preparation for the merger, Tectonic raised $130.7 million in a private placement led by a syndicate of new and existing investors. The combined company is expected to have approximately $165 million in cash and cash equivalents at closing. These funds are earmarked for advancing Tectonic’s pipeline through various clinical data catalysts, with an operational runway extending into mid-2027.
AVROBIO, Inc. and Tectonic Therapeutic, Inc. to Merge to Advance GPCR-Targeted Therapeutics
Dr. Alise Reicin, Chief Executive Officer of Tectonic, expressed enthusiasm for the merger, highlighting its potential to make significant advances for patients by targeting GPCRs, a class central to human biology. Erik Ostrowski, interim CEO and CFO of AVROBIO, echoed this sentiment, noting the merger aligns with the best interests of AVROBIO’s shareholders.
Tectonic is at the forefront of developing novel GPCR-targeted therapeutic proteins. Their GEODe platform addresses the challenges of GPCR-targeted biologics discovery. The pipeline includes the lead program TX45, a potential best-in-class Fc-relaxin fusion protein, and programs addressing Hereditary Hemorrhagic Telangiectasia and fibrosis.
Post-merger, AVROBIO shareholders are expected to own approximately 22.3% of the combined company, while Tectonic shareholders will own about 40.2%. The merger, subject to customary closing conditions, is anticipated to close in the second quarter of 2024.
AVROBIO, Inc. is a recognized name in the biotechnology sector, while Tectonic Therapeutic, Inc. is co-founded by renowned Harvard Medical School researchers Timothy A. Springer and Andrew C. Kruse. The merger represents a significant step in the advancement of GPCR-targeted therapeutic proteins, a field crucial for treating various health conditions.