Chemomab And Scipher Medicine Merge To Advance Nebokitug In Rheumatoid Arthritis Deal Secures $30 Million

Chemomab Therapeutics and Scipher Medicine Corporation have entered into a definitive merger agreement under which the two companies will combine through an all-stock transaction. Following completion of the deal, the merged entity will operate under the name Scipher Medicine Corporation and is expected to continue trading on Nasdaq under the ticker symbol "SCIP".

The combined company plans to initially focus on advancing nebokitug, a first-in-class anti-CCL24 antibody, into a Phase 2 clinical trial for the treatment of rheumatoid arthritis (RA). The therapy represents a key development priority for the new organisation as it expands its precision medicine and immunology pipeline.

Dr Seeto commented, “As a leader in precision medicine with the first and only CMS-approved molecular signature assessing treatment response in immunology, we are thrilled to move forward with this merger with Chemomab. We believe this combination will enable us to advance nebokitug as the first precision medicine for the millions of RA patients whose disease is not well treated by current medications. Notably, there have been no novel mechanisms approved by the FDA for RA since 2012, and no new branded FDA approvals in RA since 2019. Nebokitug, which blocks the chemokine CCL24, represents a unique dual-acting mechanism in RA as it targets both inflammation and fibrosis.”

“It has already demonstrated a favourable safety and tolerability profile and improvement in both inflammatory and fibrotic-related biomarkers in a Phase 2 trial. In addition, CCL24 was independently identified as the highest-ranked clinical stage RA target for efficacy using our AI Network Medicine Platform. The proposed Phase 2 study design uses standard 12-week FDA RA endpoints and will incorporate AI-enabled precision medicine by using Scipher’s validated multi-modal, multi-omic PrismRA® test to guide patient enrollment. We are excited to apply our pioneering work in AI-powered precision medicine and our broad medical and clinical immunology expertise to the further development of nebokitug. Beyond RA, we see opportunities in multiple immunological diseases.”

To support the merger and future development activities, a group of existing Scipher investors led by Northpond Ventures has committed approximately $30 million in new financing. Additional participation came from investors, including Khosla Ventures, Blue Owl Healthcare Opportunities, and funds managed by Neuberger, among others. The companies expect the combined cash position to fund operations through the second half of 2028, with topline data from the RA Phase 2 trial anticipated in the first half of 2028.

“At Chemomab, we always saw nebokitug, our first-in-class CCL24-blocking, dual mechanism antibody, as potentially applicable to a wide range of inflammatory and fibrotic conditions, including rheumatoid arthritis,” said Dr Adi Mor. “This view has been validated by Scipher’s AI precision medicine platform, which used multiple molecular signatures to identify nebokitug as the leading candidate to address a major unmet need in RA, currently a $24 billion market. We believe this merger provides our shareholders with a compelling opportunity to realise value through the clinical advancement of nebokitug in a large indication with substantial unmet need and well-established clinical endpoints, as well as through Scipher’s revenue-generating precision medicine business and its strong biopharma partnerships. Additionally, the opportunity remains to secure a potential partner for a Phase 3 trial in primary sclerosing cholangitis, an indication with no FDA-approved therapies. We look forward to working with our colleagues at Scipher to complete the proposed transaction and expedite the initiation of the Phase 2 trial in RA, marking an exciting new phase in the development of nebokitug and our anti-CCL24 platform.”

Chief Executive Officer Dr Reginald Seeto will lead the merged company, while Chemomab co-founder and CEO Adi Mor, PhD, will join the company's Board of Directors following completion of the transaction.