NEW YORK – Selecta Biosciences and Cartesian Therapeutics on Monday announced plans to merge into a single company that will develop RNA cell therapies for autoimmune diseases.
The combined company will operate under the name Cartesian Therapeutics and is trading on the Nasdaq under the ticker symbol "RNAC" as of today. Watertown, Massachusetts-based Selecta had previously traded under the ticker symbol "SELB," while Gaithersburg, Maryland-based Cartesian was privately held.
The combined company is expected to have a pro forma cash balance of more than $110 million at close, including $60.25 million from a concurrent private financing into Selecta led by Timothy Springer, a member of Selecta's board of directors. Cartesian expects to use the cash reserves to fund development of its pipeline through a Phase III study of the legacy company's lead candidate Descartes-08, an autologous RNA cell therapy.
Descartes-08 is currently being tested in a Phase IIb trial for an indication in generalized myasthenia gravis (MG), with plans to launch additional Phase II studies in other autoimmune diseases next year.
"With several potential value-driving milestones expected in the near term, including data from the ongoing Phase IIb study of Descartes-08 in MG expected in mid-2024, we are confident that this merger represents a significant opportunity for Selecta stockholders," Carsten Brunn, former president and CEO of Selecta, said in a statement.
Before the merger, Selecta had a half-dozen gene and tolerogenic therapy candidates in preclinical development for various autoimmune conditions.
Brunn will continue in his same roles in the combined company, as will Selecta CFO Blaine Davis. Serval members of the legacy Cartesian team will also remain as part of leadership, including Chief Operating Officer Metin Kurtoglu and Chief Medical Officer Milos Miljkovic. Cartesian cofounders Murat Kalayoglu and Michael Singer will serve on the board of directors.
Selecta stockholders will own roughly 26.9 percent of the company and receive transferable contingent value rights on future royalties and milestone payments for legacy Selecta assets.