Biopharmaceutical company Synlogic Inc (OTC:SYBX) and Caldera Therapeutics Inc, a privately held clinical-stage biotechnology company announced on Wednesday that they have entered into a definitive an all-stock merger agreement to combine their businesses under a newly formed holding company.

The combined company will operate as Caldera Therapeutics and plans to apply to trade on the Nasdaq Capital Market under the ticker symbol 'CALD'.

Caldera is developing CLD-423, a potential first-in-class TL1A x IL-23p19 bispecific antibody targeting inflammatory bowel disease and other immune-mediated diseases.

In support of the proposed merger, Caldera has secured commitments for an upsized USD278m private placement from healthcare institutional investors and mutual funds. The financing is expected to fund Phase 2 clinical trials of CLD-423 in ulcerative colitis and Crohn's disease, as well as potential expansion into additional immune-mediated disease areas.

The combined company expects its cash position following the merger and financing to support operations through 2029. The financing is expected to close concurrently with the merger, subject to the satisfaction of customary closing conditions.