Jade Biosciences and Aerovate Therapeutics Announce Strategic Merger to Advance Autoimmune Disease Therapies

Merger Agreement:
Jade Biosciences, a spinout of Paragon Therapeutics, and Aerovate Therapeutics have entered into a definitive merger agreement to create a combined entity focused on advancing Jade’s portfolio of novel therapies for autoimmune diseases.

Ownership Structure:
Post-merger, Aerovate stockholders will own approximately 1.6% of the combined company, while pre-merger Jade stockholders will own approximately 98.4%.

Financial Details:
The combined company has raised approximately $300 million, including anticipated proceeds from an oversubscribed pre-closing private financing, expected to fund operations through 2027.

Clinical Development:
Jade plans to initiate a clinical trial for JADE-001, a promising anti-APRIL monoclonal antibody for IgA nephropathy, in the second half of 2025.

Operational Plans:
The combined company will operate under the name Jade Biosciences and trade on Nasdaq under the ticker symbol “JBIO”.

Cash Dividend:
Prior to closing, Aerovate expects to declare a cash dividend to pre-merger Aerovate stockholders, distributing excess net cash expected to be approximately $65 million.