After a failed merger that led to massive layoffs and a lawsuit, solid tumor biotech Lisata Therapeutics has found a new future through a combination with cardio specialist Marea Therapeutics.
The stock-for-stock transaction, which has the hallmarks of a reverse merger, will result in Lisata’s current shareholders owning about 2.4% of the resulting company, compared to 59.5% for Marea’s investors. Investors who are pitching in for a $225 million private placement will own the rest.
The enlarged Lisata will be focused on pushing forward Marea’s clinical-stage drugs MAR001 and MAR002, which are in phase 2 development for severe hypertriglyceridemia and acromegaly, respectively. Both studies are set to read out topline data in the fourth quarter of this year, Lisata said in a Sept. 17 release.
RA Capital Management, Forbion, Third Rock Ventures and Sofinnova Investments were among the investors in the private placement.
Lisata began hunting for an exit after a planned merger with Kuva Labs fell apart last month, which led the company to lay off 72% of its workforce, including its chief medical officer. Kuva had previously licensed a drug from Lisata back in 2024, and announced plans to buy the biotech at the start of the year.
“After a thorough review of strategic alternatives, the acquisition of Marea marks a significant milestone for Lisata as we broaden our focus toward advancing Marea’s product candidate portfolio, which addresses significant unmet need across a range of cardioendocrine diseases,” Lisata CEO David Mazzo, Ph.D., said in the release.
“With a strong balance sheet, we believe that we are well-positioned to drive these programs through their next stages of development and ultimately deliver meaningful benefit to patients,” Mazzo added.
Lisata has also filed a lawsuit against Kuva in the Delaware Court of Chancery alleging a breach of agreement over the collapsed merger. The company is seeking damages for its shareholders as well as a $2 million termination fee.