Bringing a new medicine to patients requires years of research, clinical testing, and financial support. To move that process forward, NextCure and Avere Therapeutics have announced a merger that will create a new biotechnology company focused on developing a once-weekly oral treatment for inflammatory diseases. The deal combines Avere Therapeutics’ clinical-stage drug candidate with NextCure’s public company platform and new funding to support future clinical trials.
Merger Will Create Avere Therapeutics, Inc.
NextCure, a clinical-stage biopharmaceutical company, and Avere Therapeutics, a privately held biotechnology company, have entered into a definitive merger agreement in an all-stock transaction. Once the merger is completed, the combined company will operate as Avere Therapeutics, Inc. and is expected to trade on the Nasdaq Capital Market under the ticker symbol AVRX.
The companies expect the transaction to close in the second half of 2026. The merger remains subject to approval by shareholders of both companies and other customary closing conditions.
Combined Company Will Focus on AVR-001
The merged company will focus on AVR-001, Avere Therapeutics’ lead drug candidate. AVR-001 is an oral peptide designed to block the interleukin-23 (IL-23) receptor, a signaling pathway involved in several immune-mediated inflammatory diseases, including plaque psoriasis and ulcerative colitis.
According to the companies, Phase 1b clinical results in patients with moderate-to-severe plaque psoriasis showed encouraging data that support the continued development of AVR-001. The therapy has an approximately 100-hour half-life, making it suitable for once-weekly oral dosing. The companies believe this approach could provide patients with a convenient oral treatment option while maintaining sustained IL-23 receptor inhibition.
Funding Expected to Support Clinical Development
Alongside the merger announcement, the companies also announced a $320 million private financing from a syndicate of leading institutional investors.
The financing was co-led by Fairmount and Hansoh Pharmaceutical Group, with participation from investors including Venrock Healthcare Capital Partners, General Atlantic, Janus Henderson Investors, Wellington Management, Boyu Capital, Sirona Capital, funds advised by T. Rowe Price Associates, Deep Track Capital, BVF Partners, Logos Capital, RTW Investments, Commodore Capital, Surveyor Capital, Point72, and other institutional investors.
The companies expect the funding to support operations through several important clinical milestones. These include a planned Phase 2b trial readout in plaque psoriasis, the initiation of a Phase 3 psoriasis study, and the launch of a Phase 2b clinical trial in ulcerative colitis. The U.S. Investigational New Drug (IND) application for AVR-001 is already open, and the Phase 2b psoriasis study is expected to begin in early 2027. Hansoh Pharmaceutical also expects Phase 2b psoriasis data from China in 2027.
Experienced Leadership Team to Lead the Business
Following the completion of the merger, Dr. Andrew Cheng will serve as Chief Executive Officer, President, and Chairman of the Board of the combined company.
He will be joined by Kitty Yale as Chief Development Officer, William White as Chief Financial Officer and Head of Corporate Development, and Brett Pletcher as General Counsel.
The leadership team previously guided Akero Therapeutics from its pre-initial public offering stage through its acquisition by Novo Nordisk in December 2025 in a transaction valued at up to $5.2 billion.
Looking Ahead
The merger marks an important step for both companies as they work to advance new treatment options for patients living with chronic inflammatory diseases. By combining Avere Therapeutics’ clinical-stage pipeline with NextCure’s public market presence and substantial new financing, the new Avere Therapeutics aims to accelerate the development of AVR-001.
If the transaction receives the required approvals and closes as planned in the second half of 2026, the combined company will focus on advancing AVR-001 through its next stages of clinical development, with the goal of bringing a once-weekly oral IL-23 therapy closer to patients.
