Corxel Pharmaceuticals, is going public through a merger with Amanat Acquisition, a Nasdaq-listed special purpose acquisition company, RTW Biotech Opportunities highlighted in an investor update on Tuesday.
Corxel US is part of RTW Bio's largest private holding, and the London-listed investment company, which targets transformative life sciences assets, said Corxel represented 5.3% of its net asset value, worth approximately $50 million, as at 30 September.
The deal is expected to generate gross proceeds of approximately $377 million, assuming no redemptions by Amanat shareholders, made up of an oversubscribed PIPE (private investment in public equity) of roughly $300 million plus approximately $75 million held in Amanat's trust account.
Corxel US develops oral treatments for obesity, with lead candidate CX11, a once-daily small-molecule GLP-1 receptor agonist due to begin a global Phase 3 trial, and a preclinical programme, CX12, an oral amylin receptor agonist targeting an IND application in the first half of 2027.
Proceeds are expected to fund the combined company through 2029, including the Phase 3 trial for CX11, with the enlarged group set to list on the Nasdaq Capital Market under a new name and ticker still to be announced.
RTW Investments created Corxel as its second new company creation, and RTW Bio first invested in the seed round in February 2020.
Corxel HK's assets, including JX10, a clinical-stage programme for acute ischaemic stroke, sit outside Corxel US and will not form part of the combined company; RTW Bio will retain a separate holding in Corxel HK's parent once the Amanat merger completes.
The deal is the latest in a run of portfolio exits this year, following seven portfolio company acquisitions, the IPOs of Aktis, Kailera and the $318 million upsized Nasdaq listing of Lycia Therapeutics last week, and four completed or announced reverse mergers.
"We're delighted that Corxel is entering the public markets," said Rod Wong, chief investment officer of RTW Investments. "This financing will support CX11 through Phase 3, and we look forward to continuing to support the team."
Completion is expected in the first half of 2027, subject to approval by Amanat shareholders.