Yarrow Bioscience (NASDAQ:YARW), a portfolio holding for London-listed RTW Biotech Opportunities (LSE:RTW), successfully floated on the Nasdaq on Tuesday, through a reverse merger with VYNE Therapeutics.
It was backed by a $200 million private financing led by RTW Investments, which followed an initial $5.9 million investment in Yarrow's Series A round in December 2025.
RTW highlighted that Yarrow marks the seventh new company creation it has backed.
The newly floated biotech is developing YB-101, a potential first-in-class antibody targeting the thyroid-stimulating hormone receptor, the shared driver of autoantibodies in both Graves' disease and thyroid eye disease. The molecule has received Fast Track Designation from the US Food and Drug Administration, and Yarrow has begun a Phase 2a/2b trial, with data from the 2a portion expected in the second half of 2027.
Based on the first-day closing share price, RTW's stake delivered a 3.7 times multiple on invested capital and a 192% uplift to carrying value. This gain adds $20.4 million to RTW Biotech Opportunities' net asset value, equivalent to 2.0% of its 30 June NAV.
News Intelligence what this means for the company
RTW Venture Fund's portfolio company Yarrow Bioscience completed its Nasdaq listing on 28 July after a reverse merger with VYNE Therapeutics, backed by $200 million in private financing led by RTW Investments. RTW's $8.3 million total investment (Series A and PIPE) has already generated a 3.7x return based on first-day closing prices, adding $20.4 million to the fund's NAV—equivalent to 2.0% of its 30 June position. The win validates RTW's thesis on YB-101, a potential first-in-class antibody for Graves' disease and thyroid eye disease that has received FDA Fast Track Designation and is now in Phase 2a/2b trials with data expected in H2 2027.
The Yarrow exit demonstrates RTW's ability to generate outsized returns on early-stage bets—a 3.7x multiple in under eight months—and marks the seventh company creation from RTW Investments' platform. The near-term catalyst (Phase 2a readout in H2 2027) is now in a public vehicle, creating potential for further upside or downside volatility in the fund's NAV as clinical data emerges.
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