BridgeBio Oncology Therapeutics to Go Public via SPAC Merger, Securing $550 Million for Cancer Drug Development

BridgeBio Oncology Therapeutics (BBOT), a spinout from BridgeBio Pharma, has announced plans to merge with Helix Acquisition Corp. II, a special purpose acquisition company (SPAC). This strategic move aims to take the cancer-focused biotech public and secure substantial funding for its pipeline of small-molecule therapeutics targeting RAS and PI3Kα malignancies.

Merger Details and Financial Boost

The merger, announced on February 28, 2025, will combine BBOT's existing $100 million with Helix's $196 million. Additionally, a concurrent PIPE (Private Investment in Public Equity) financing of $260 million will be led by Cormorant Asset Management, with participation from notable investors including Novo Holdings, ADAR1 Capital Management, Omega Funds, and BioCapital Advisors. This tri-pronged financial strategy is expected to provide the merged entity with approximately $550 million in cash reserves.

Eli Wallace, Ph.D., CEO of BBOT, stated, "This financing and transaction mark a significant milestone for our company. We believe this transaction is the optimal path to advance our programs and make a meaningful impact on patients affected by deadly cancers."

BBOT's Clinical Pipeline and Development Plans

The substantial influx of capital will be directed towards advancing BBOT's three key programs through early-stage clinical trials:

1. BBO-8520: A KRAS inhibitor currently in phase 1 trials for non-small cell lung cancer.
2. BBO-10203: An inhibitor designed to target RAS-driven PI3Kα-AKT signaling in tumors, undergoing phase 1 studies for breast, colorectal, and non-small cell lung cancers.
3. BBO-11818: Another KRAS inhibitor slated to enter clinical trials in the first half of 2025.

Industry Perspective and SPAC Resurgence

This merger represents a notable return to SPAC deals in the biotech sector, which had seen declining interest in recent years. Bihua Chen, CEO of both Cormorant and Helix, expressed confidence in BBOT's potential: "BBOT's team has some of the brightest minds in oncology, with a proven track record of developing new medicines. The company's pipeline has the potential for paradigm-shifting impact on the treatment of some of the highest prevalence malignancies."

The BBOT-Helix merger follows a similar move by cardiovascular-focused Medera, which completed a reverse merger with Keen Vision Acquisition in September 2024, suggesting a possible resurgence of interest in SPAC transactions within the biotech industry.