NextCure (NXTC) stock exploded over 300% on Tuesday after the clinical-stage biotech announced a merger with privately-held Avere Therapeutics in a deal backed by $320 million in fresh financing.
Despite the massive single-day move, the stock remains down roughly 84% year-to-date, with a market cap of just $7.87 million heading into the announcement.
The all-stock transaction will see the combined company operate under the Avere Therapeutics name and trade on Nasdaq under the ticker symbol AVRX. The deal is expected to close in the second half of 2026.
The $320 million private placement includes $251 million in convertible notes that will convert to common stock at closing. Fairmount and Hansoh Pharmaceutical led the round, with participation from Venrock Healthcare Capital Partners, General Atlantic, Janus Henderson Investors, and Wellington Management.
The merger is built around Avere’s lead asset, AVR-001 — a once-weekly oral IL-23 receptor antagonist being developed for inflammatory conditions including psoriasis and ulcerative colitis.
Avere recently licensed AVR-001 from Hansoh, covering rights outside Greater China. Hansoh received $120 million upfront and is eligible for up to $2.18 billion in development and sales milestone payments, plus royalties.
The new financing is designed to fund a Phase 2b psoriasis trial, the start of a Phase 3 psoriasis study, and a Phase 2b ulcerative colitis study. A US IND for AVR-001 is already open, with Phase 2b initiation expected in early 2027 and a readout expected in the first half of 2028.
Avere CEO Dr. Andrew Cheng will lead the combined company as CEO, President, and Chairman. Kitty Yale steps in as Chief Development Officer, William White as CFO, and Brett Pletcher as General Counsel.
NextCure’s current CEO Michael Richman called the deal “a compelling opportunity” for stockholders to participate in AVR-001’s development.
NextCure stockholders will hold approximately 1.21% of the combined entity — reflecting the company’s current size relative to Avere.
They will also receive contingent value rights entitling them to 90% of net proceeds from any future monetization of NextCure’s existing pipeline assets for two years after closing.
Trading volume on Tuesday topped 44 million shares. That compares to a three-month average daily volume of around 37,000 shares.
Wall Street’s consensus on NXTC is a Moderate Buy, based on two Buy ratings in the past three months, with an average price target of $20 per share.
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