Biotech Merger Boosts Precision RA
Scipher Medicine Merges with Chemomab, Advancing AI-Powered Precision RA Therapy
Key Points
Nebokitug, Chemomab's anti-CCL24 antibody for rheumatoid arthritis, showed a favorable safety and tolerability profile with improvements in inflammatory and fibrotic biomarkers in prior mid-stage data.
Scipher's AI-driven PrismRA platform identified CCL24 as the highest-ranked clinical-stage RA target for efficacy, underscoring the rationale for prioritizing nebokitug in the merger.
The merger is backed by notable investors Northpond Ventures and Khosla Ventures, with a financing commitment of about $30 million to fund operations into the second half of 2028.
The transaction is an all-stock (stock-for-stock) merger, with the combined company retaining the Scipher brand and moving to Nasdaq under SCIP.
Chemomab is being redomiciled to the United States as part of the deal, and the merged entity will operate under the Scipher umbrella with an NC Nasdaq listing under the ticker SCIP.
Chemomab Therapeutics and Scipher Medicine have agreed to merge in an all-stock deal, creating a combined company that will trade on Nasdaq under the ticker SCIP, according to Fierce Biotech. The merged entity will keep the Scipher Medicine name and focus on nebokitug, Chemomab's anti-CCL24 antibody for rheumatoid arthritis.
A financing package of about $30 million backs the deal, giving the combined company runway into the second half of 2028, CityBiz reported. The pre-merger valuation stands at roughly $150 million, with Scipher shareholders expected to own about 68% and Chemomab shareholders about 32%.
AI Platform Pinpoints Nebokitug as Top RA Target
Scipher's PrismRA platform uses artificial intelligence to match patients with the right treatments for rheumatoid arthritis. The platform ranked CCL24 — the protein nebokitug targets — as the highest-ranked clinical-stage RA target for efficacy, according to CityBiz. That finding gave Scipher the scientific rationale to pursue the merger.
Nebokitug previously showed a favorable safety profile in mid-stage trials. It also improved inflammatory and fibrotic biomarkers, TradingView reported. Those early results, combined with Scipher's AI signal, position nebokitug as a potential first precision medicine for RA in a market worth billions of dollars.
Phase 2 Trial Set to Launch With PrismRA Patient Selection
The combined company plans to advance nebokitug into a Phase 2 clinical trial. Scipher's PrismRA test will be used to identify the best-fit patients for the study. Topline results from the trial are expected in the first half of 2028, according to GuruFocus.
This approach — pairing a drug with a diagnostic tool to find ideal patients — is the core of precision medicine. The goal is to show nebokitug works better when used in the right patients. If successful, the drug could stand out in a crowded RA market dominated by blockbuster biologics.
$30 Million Deal Backed by Top Venture Investors
The $30 million financing round is led by Northpond Ventures and Khosla Ventures, two well-known biotech and tech investors, TradingView reported. The funds will keep the company operating through the key Phase 2 readout expected in early 2028.
The deal also includes contingent value rights tied to nebokitug milestones. Those rights give Chemomab shareholders a chance to earn more if the drug hits specific goals after the merger closes, according to Seeking Alpha.
Chemomab Moves to US as Scipher Takes the Helm
Chemomab is an Israeli biotech. As part of the deal, it will redomicile — meaning legally move — to the United States, Fierce Biotech reported. The combined company will then list on Nasdaq under SCIP, replacing Chemomab's current Nasdaq ticker CMMB.
The transaction is structured as an all-stock merger, meaning no cash changes hands between the two companies. Scipher will run the show going forward. The deal reflects a broader trend of smaller biotechs joining forces to stretch resources and cut the cost of drug development.
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