Werewolf Therapeutics (HOWL) Stock Jumps 127% as Merger and $150M Raise Target CRPS Market

TLDR

• Werewolf Therapeutics (HOWL) and Ambros Therapeutics agreed to merge in an all-stock deal, with the combined company trading as “AMBX” on Nasdaq
• A $150 million private placement was secured, co-led by RA Capital Management and Janus Henderson Investors
• The combined company will focus on neridronate, a drug targeting Complex Regional Pain Syndrome Type 1 (CRPS-1), with no current FDA-approved treatments
• Separately, Werewolf sold preclinical assets to EMD Serono for $28 million upfront, plus $5 million after technology transfer
• HOWL stock was up 127% in premarket trading Friday, changing hands at $0.9780

Werewolf Therapeutics (HOWL) stock surged 127% in premarket trading Friday, hitting $0.9780, after the company announced two separate deals on the same day.

Werewolf Therapeutics, Inc., HOWL

The first is a merger with Ambros Therapeutics in an all-stock transaction. The combined company will operate under the Ambros Therapeutics name and is expected to list on Nasdaq under the ticker “AMBX.”

Alongside the merger, the companies secured $150 million in private placement financing. The raise was oversubscribed and co-led by RA Capital Management and Janus Henderson Investors, with Aberdeen Investments, Adage Capital Partners and Balyasny Asset Management also participating.

$HOWL – Werewolf Therapeutics and Ambros Therapeutics
🔹Announce Merger Agreement
🔹With Concurrent Oversubscribed $150M Private Placement
🔹Implied Ambros valuation of $500M versus Werewolf’s $47.5M
🔹Expected cash runway into 1H 2029, including through Phase 3 topline and… pic.twitter.com/aZTzfGTLVc

— John Zidar aka/ Stock Wizard (@JohnZidar) August 21, 2026

The financing is expected to fund operations through topline results from the pivotal CRPS-RISE Phase 3 trial in 2028. The combined company sees its cash runway extending into the first half of 2029.

Targeting an Untreated Condition

The merger’s focus is neridronate, a drug being evaluated for patients with warm CRPS-1. About 65,000 people are newly diagnosed with CRPS-1 in the U.S. each year, and there are currently no FDA-approved treatments for the condition.

Neridronate already has FDA Breakthrough Therapy, Fast Track and Orphan Drug designations. It is approved in Italy for CRPS and other conditions and has been given to around 600,000 patients there.

Ambros Therapeutics says its intellectual property portfolio, combined with the Orphan Drug designation, could support U.S. market exclusivity through 2045.

The deal values Ambros at an implied $500 million. Werewolf is valued at $47.5 million before the private placement. After close, Ambros shareholders are expected to hold about 71.7% of the combined company, Werewolf shareholders around 6.8%, and private placement investors roughly 21.5%.

The merger is expected to close by the first quarter of 2027, pending shareholder approvals.

Werewolf Sells Preclinical Assets to EMD Serono

In a separate transaction, Werewolf entered into an asset purchase agreement with EMD Serono Research & Development Institute, a unit of Merck KGaA (MKKGY), signed on August 14 and disclosed in an August 20 filing.

Under the deal, EMD Serono agreed to pay $28 million upfront and an additional $5 million upon completion of the technology transfer. The agreement covers Werewolf’s preclinical INDUCER platform and certain INDUKINE assets.

Werewolf retained the rights needed to keep developing its WTX-124 and WTX-330 clinical programs. EMD Serono also granted Werewolf an exclusive license to certain transferred patents that support those programs.

HOWL was trading at $0.9780 in premarket Friday, up 127% on the session.

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