Imara Inc (NASDAQ: IMRA) plunges over 6.07% in pre trading session on Monday as the firm decided to merge Enliven Therapeutics Inc. in an all-stock transaction. The combined company will focus on advancing Enliven’s pipeline of precision oncology product candidates.
Enliven Therapeutics, Inc. and Imara Inc. (IMRA) announced a formal merger agreement in which the businesses would be combined in an all-stock transaction. Enliven’s pipeline of precision oncology therapeutic candidates will be prioritized by the merged business.
Enliven also intends to raise approximately $165 million in a concurrent private financing co-led by new investors Fairmount and Venrock Healthcare Capital Partners, with participation from additional new investors Fidelity Management & Research Company, RA Capital Management, Frazier Life Sciences, and Commodore Capital, in support of the merger. OrbiMed, 5AM Ventures, Surveyor Capital, Cormorant Asset Management, Roche Venture Fund, Sheatree Capital, Boxer Capital, Logos Capital, and Janus Henderson Investors will also participate in the funding. The fundraising was oversubscribed, with fresh investor allocations accounting for more than 60% of the entire amount of the transaction, which is slated to conclude immediately before the merger’s completion.
After transaction expenditures, the merged business is estimated to have approximately $300 million in cash and cash equivalents at closure, based on the cash expected from both firms at close and the proceeds of the planned concurrent financing. The funds will be utilized to develop Enliven’s pipeline through various clinical milestones and to provide runway through early 2026. The merger and financing are expected to close in the first quarter of 2023, subject to both companies’ stockholder approval, the effectiveness of a registration statement to be filed with the U.S. Securities and Exchange Commission (SEC) to register the shares of Imara common stock to be issued in connection with the merger, and the fulfillment of customary closing conditions.
The Co-Founder and CEO of Enliven, Sam Kintz stated that they are delighted to announce this merger with Imara, which comes at an important juncture for Enliven. They just started a Phase 1 clinical trial for ELVN-001 in adults with CML, and they aim to file an IND for ELVN-002 by the end of the year. They anticipate that this transaction will provide Enliven with funds to help them reach several critical milestones and explore the possibilities of their pipeline. They are excited to assist patients with cancer not just survive longer, but live better lives.