Swiss ADC Biotech Veraxa Announces $1.64 Billion SPAC Deal to List on NASDAQ

Veraxa, a Swiss cancer biotech specializing in antibody-drug conjugates (ADCs), has announced plans to go public through a merger with special purpose acquisition company (SPAC) Voyager Acquisition Corp. The deal, valuing Veraxa at $1.64 billion, marks a significant development in the pharmaceutical industry and signals a potential resurgence of SPAC transactions in the biotech sector.

Deal Structure and Financials

The merger will see Veraxa contribute approximately $1.3 billion in equity, with Voyager's assets bringing the total estimated valuation to $1.64 billion. Upon completion, the combined entity will trade on the NASDAQ under the ticker symbol VERX. Veraxa is set to gain access to $253 million currently held in trust by Voyager, providing a substantial cash infusion to support its operations and clinical development pipeline.

In addition to the SPAC merger, Veraxa is actively pursuing a crossover funding round to further bolster its financial position. The company anticipates that this additional capital will sustain its operations and clinical development efforts for the next two years. The crossover round is expected to close prior to the finalization of the SPAC transaction, which is slated for completion in the fourth quarter of this year.

Veraxa's Pipeline and Background

Veraxa boasts a diverse portfolio of nine programs in various stages of development, ranging from discovery to Phase I clinical trials. The company's most advanced asset is VX-A901, an Fc-enhanced therapeutic antibody currently undergoing Phase I testing for blood cancers.

Founded in December 2020, Veraxa emerged from the acquisition of two German biotechs, Araxa Biosciences GmbH and Velabs Therapeutics GmbH. The company's roots can be traced back to Germany's European Molecular Biology Laboratory (EMBL), from which it was spun off. Swiss life sciences accelerator Xlife Sciences played a crucial role in Veraxa's incubation and remains a majority shareholder alongside EMBL.

SPAC Resurgence in Biotech

This transaction represents a notable return to SPAC deals in the biotech sector, a financing method that had fallen out of favor in recent years. The Veraxa-Voyager merger follows a similar recent deal between BridgeBio Oncology and Helix Acquisition Corp. II, valued at $450 million in proceeds. These developments suggest a potential revival of SPAC transactions as a means for biotech companies to access public markets and secure significant funding for their research and development efforts.