Clinical-stage biopharmaceutical company Pulmatrix Inc (Nasdaq: PULM) announced on Wednesday that it plans to merge with Cullgen Inc, a privately-held company that specialises in targeted protein degradation for cancer and other diseases.

This merger will create a Nasdaq-listed entity focused on advancing Cullgen's proprietary uSMITE platform for the development of novel therapeutics. Cullgen has three degrader programs entering or about to begin Phase 1 clinical trials, targeting cancer and pain management.

The combined company, headquartered in San Diego, will have approximately USD65m in cash and cash equivalents upon closing, expected by the end of March 2025, to support clinical milestones through 2026. As part of the agreement, Pulmatrix will divest its iSPERSE-based migraine and other development candidates.

Upon closing, Pulmatrix shareholders will own approximately 3.6% of the merged entity, with Cullgen's shareholders holding 96.4%. Cullgen's Chairman and CEO, Dr Ying Luo, will lead the new company, which will continue under the name Cullgen Inc.

Cullgen's lead programs include CG001419, a first-in-class oral pan-TRK degrader for cancer and pain, and CG009301, a GSPT1 degrader targeting blood cancers. These therapies are expected to advance rapidly, with patient enrollment for CG001419's pain trial set for early 2025. Cullgen is also progressing several other degrader programs for cancer and autoimmune diseases, including a partnership with Astellas Pharma Inc.