U.S.-based Barinthus Biotherapeutics is entering a reverse merger with U.K. biotech Clywedog Therapeutics, with the combined company expected to advance three clinical assets across diabetes and autoimmune disease.
The new company will operate under the Clywedog name and will take Barinthus’ position on the Nasdaq, trading under the ticker “CLYD,” according to a Sept. 30 release.
Before the deal closes, the combined company could extend a partial tender offer to acquire shares held by Barinthus stockholders for a total price of up to $27 million.
Once the merger is complete, Barinthus shareholders will own about 34% of the new entity, while Clywedog stockholders will hold 66% ownership of the company.
The merger has been unanimously agreed upon by both biotechs’ boards and now awaits stockholder approval. If cleared, the deal is expected to close in the first half of next year.
The freshly created company is slated to receive investments from existing Clywedog shareholders OrbiMed and Torrey Pines Investment, plus unnamed new investors. The new entity will have an estimated cash runway stretching through 2027, according to the release.
Barinthus CEO Bill Enright will lead the way at the combined company, with current Clywedog CEO and OrbiMed venture partner Iain Dukes expected to lead the board of directors as executive chair.
Together, the merged entity will work to advance Clywedog’s diabetes portfolio, plus Barinthus’ immunology and immunology program, with the initial focus on three clinical assets.
The first is CLY-101 (balomenib), a menin inhibitor being tested as a treatment designed to offer long-term glucose control for Type 2 diabetes and restore insulin production for Type 1 diabetes.
CLY-101 has been evaluated in phase 1 trials in both forms of diabetes, with phase 2a studies in both diabetes types expected to read out in the second half of 2026.
The candidate could also potentially be paired with a GLP-1 agonist—such as Ozempic—as a more comprehensive strategy for diabetes management, according to the release.
Second up is CLY-201, a TYK2 inhibitor made to target T-cell mediated inflammation. Clywedog is assessing the program as a possible preventive measure designed to slow the inflammation that leads to Type 1 diabetes.
The company is planning a midstage study for the asset to evaluate safety, glycemic control and circulating C-peptide levels among patients with Type 1 diabetes.
The last clinical candidate comes from Barinthus and takes aim at celiac disease, an autoimmune disorder that causes chronic digestive issues related to gluten exposure.
The asset, dubbed VTP-1000, is designed to serve as an antigen-specific tolerance immunotherapy that can prevent or reduce symptoms after gluten exposure. The program is currently being tested out in a phase 1 study, with topline data from the single ascending dose portion expected by the end of the year.
The deal comes after a string of bad luck for Barinthus. In January, the biotech zeroed in on immunology and inflammation indications, shedding a chronic hepatitis B candidate that failed to show efficacy in a midstage trial.
In tandem with the pipeline pivot, Barinthus also laid off 65% of staffers across both its U.K. and U.S. sites, shuttering its locations across the pond and consolidating operations to a location in Maryland.
The year prior, the biotech had sidelined a prostate cancer candidate and jettisoned a quarter of its workforce in efforts to extend its cash runway.
As recently as this August, Barinthus continued to search for a partner to pick up development for both the hepatitis B and prostate cancer candidates. The company had $87 million in cash and cash equivalents as of June 30, money the biotech previously said would extend into 2027.
Not as much is known about Clywedog. The private company touts its own artificial intelligence platform to help accelerate discovery and development of potentially best- or first-in-class therapies, according to its website.