Regado Biosciences, a spin-out of Duke University based in new Jersey with a lab in the Triangle, is merging with a San Francisco biotech.
Regado has lost most of its value after the FDA halted a trial of its blood clotting candidate.
The company went public in September 2013, raising $43 million. However, its stock (RGDO) has been in risk of being delisted.
Shares jumped more than 20 percent to above $1 on the news.
The deal with Tobria Therapeutics, which is privately held, was announced early Wednesday.
Investors of Tobria will put as much as $22 million in capital in the merger, and the combined firm will have some $60 million in cash.
Regado’s investors will own a third of the merged venture. The name will be changed in Tobria, and the headquarters will be based in San Francisco. Top Tobria management will run the company.
Through the merger, Tobria will become a public company and will have funds to advance its own novel drug targeting liver disease.
“Following an extensive and thorough review of strategic alternatives, we believe the proposed merger with Tobira provides the opportunity for substantial returns for Regado shareholders,” said Michael Metzger, Regado’s chief executive officer. “The merged company will derive a significant advantage from the extensive clinical, commercial and transactional expertise of the combined board and management teams. We are optimistic that the strength of the leadership team, coupled with the cash Regado will contribute to the merger, will enable CVC to reach significant value inflections in the near term.”