ARCA Biopharma surges on deal to merge with Oruka Therapeutics

Oruka Therapeutics

03/04/2024 15:53

(Updates)
    ** Shares of ARCA Biopharma  ABIO.O  more than double to a
near three-year high of $3.82
    ** Stock set for its biggest one day pct. gain in nearly
four years if gains hold     
    ** Company to merge with private biotech Oruka Therapeutics
in an 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 
    ** YTD, stock up 117.4%

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