Acelyrin Affirms Merger with Alumis, Rejects Concentra's Surprise Offer

In a significant development in the pharmaceutical industry, Acelyrin has reaffirmed its commitment to merge with Alumis, declining an unexpected offer from Concentra Biosciences. The decision comes after careful consideration and consultation with independent financial and legal advisors.

Merger Details and Rationale

Acelyrin and Alumis, both California-based biotechnology companies, are moving forward with their previously announced merger plans. The combined entity will operate under the Alumis name and be headquartered in South San Francisco. Upon completion of the merger, Alumis stockholders will own 55% of the company, with Acelyrin shareholders holding the remaining 45%.

Mina Kim, CEO of Acelyrin, expressed confidence in the decision, stating, "The Acelyrin board of directors is confident that the all-stock transaction with Alumis maximizes long-term value for Acelyrin stockholders and continues to recommend that stockholders support the planned merger." Kim emphasized that the merger was chosen after a comprehensive assessment of strategic alternatives.

The merger is expected to close in the second quarter of 2025, subject to approval by stockholders from both companies.

Financial Implications and Pipeline Prospects

The merged company is projected to have a strong financial position, with approximately $737 million in cash, cash equivalents, and marketable securities as of December 31, 2024. This substantial cash runway is expected to support operations into 2027.

The expanded Alumis will prioritize key programs from both companies' pipelines. Notable projects include:

• ESK-001: An allosteric tyrosine kinase 2 inhibitor currently in a phase 3 trial for plaque psoriasis.
• A-005: A TYK2 inhibitor slated for a phase 2 trial in multiple sclerosis later this year.
• Lonigutamab: Acelyrin's anti-IGF-1R monoclonal antibody in a phase 2 trial for thyroid eye disease, potentially rivaling Amgen's blockbuster drug Tepezza.

Industry Context and Recent Challenges

The pharmaceutical landscape has seen significant activity in mergers and acquisitions, with companies like Tang Capital Partners' Concentra Biosciences actively pursuing struggling biotechs. Concentra's recent offer to Acelyrin, which included $3 per share in cash and a contingent value right, was ultimately deemed not superior to the planned merger with Alumis.

Acelyrin has faced challenges in recent months, including a workforce reduction of one-third last summer and the discontinuation of its former lead asset, izokibep. However, the company is looking to rebound through this strategic merger, leveraging combined resources and expertise to advance its pipeline.

The pharmaceutical industry continues to evolve rapidly, with companies seeking strategic partnerships and mergers to strengthen their positions and accelerate drug development efforts. As the Acelyrin-Alumis merger progresses, industry observers will be watching closely to see how this consolidation impacts the competitive landscape and drug development pipeline in the coming years.