ARCA Biopharma jumps on deal to merge with Oruka Therapeutics

Oruka Therapeutics

03/04/2024 13:59

** Shares of ARCA Biopharma  ABIO.O  jump ~87% to $3.2
premarket
    ** Company to merge with private biotech Oruka Therapeutics
in all-stock deal
    ** Oruka has secured $275 mln stock and warrant funding to
support the deal from a group of healthcare investors led by
Fairmount and Venrock Healthcare Capital Partners
    ** Newly formed combined company will operate as Oruka
Therapeutics and trade on Nasdaq under the ticker symbol "ORKA"
    ** Cash balance at deal closing is expected to fund Oruka's 
operations through 2027
    ** Cash balance to support development of Oruka's
experimental drug candidates, ORKA-001 and ORKA-002, as
potential treatments for chronic skin diseases
    ** ABIO shareholders will own about 2.4% of the combined
company, while Oruka stockholders and investors will own the
rest 
    ** As of last close, ABIO up ~1% YTD

 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))