Barinthus Bio and Clywedog Therapeutics Announce Reverse Merger, Advancing Diabetes and Autoimmune Disease Pipeline

Barinthus Biotherapeutics, a U.S.-based biotech company, has entered into a reverse merger agreement with U.K.-based Clywedog Therapeutics. The deal, announced on September 30, 2025, aims to create a combined entity focused on advancing clinical assets in diabetes and autoimmune diseases.

Merger Details and Financial Implications

The newly formed company will operate under the Clywedog name and will be listed on the Nasdaq under the ticker "CLYD." Upon completion of the merger, Barinthus shareholders will own approximately 34% of the new entity, while Clywedog stockholders will hold the remaining 66%.

Before the deal closes, the combined company may extend a partial tender offer to acquire shares held by Barinthus stockholders for up to $27 million. The merger, unanimously approved by both companies' boards, is expected to close in the first half of 2026, subject to stockholder approval.

The merged entity is set to receive investments from existing Clywedog shareholders OrbiMed and Torrey Pines Investment, along with unnamed new investors. This influx of capital is projected to extend the company's cash runway through 2027.

Leadership and Strategic Focus

Bill Enright, current CEO of Barinthus, will lead the combined company. Iain Dukes, Clywedog's CEO and OrbiMed venture partner, is slated to become the executive chair of the board of directors.

The merger brings together Clywedog's diabetes portfolio and Barinthus' immunology program, with an initial focus on three clinical assets:

1. CLY-101 (balomenib): A menin inhibitor for long-term glucose control in Type 2 diabetes and insulin production restoration in Type 1 diabetes. Phase 2a study results are expected in the second half of 2026.

2. CLY-201: A TYK2 inhibitor targeting T-cell mediated inflammation, potentially slowing the progression of Type 1 diabetes.

3. VTP-1000: Barinthus' antigen-specific tolerance immunotherapy for celiac disease, currently in phase 1 trials with topline data expected by the end of 2025.

Pipeline Developments and Company Backgrounds

The merger comes after a series of setbacks for Barinthus, including the discontinuation of a chronic hepatitis B candidate and a prostate cancer program. These decisions led to significant layoffs and consolidation of operations to Maryland.

Clywedog, a private company, brings its artificial intelligence platform to the merger, which is designed to accelerate the discovery and development of potentially best- or first-in-class therapies.

The combined entity aims to leverage its diverse pipeline and technological capabilities to address unmet needs in diabetes management and autoimmune disorders, positioning itself as a significant player in these therapeutic areas.