The combined firm is expected to develop a portfolio of clinical-stage candidates targeting Types 1 and 2 diabetes and coeliac disease. 

US-based clinical-stage biopharmaceutical company Barinthus Biotherapeutics has performed a reverse takeover of British diabetes biotech firm Clywedog Therapeutics for $27 million (£20.3 million). 

The newly combined company will develop a portfolio of clinical-stage candidates targeting metabolic and autoimmune diseases. The group says that a number of clinical data milestones are expected within 18 months of the transaction closing.

When the transaction closes in the first half of next year, the combined company will be renamed Clywedog Therapeutics and will trade on NASDAQ under the new ticker symbol CLYD. 

“We believe that the combination of Barinthus Bio and Clywedog will create immediate value and long-term upside for all stakeholders by diversifying our pipeline and increasing the number of meaningful clinical milestones,” said Barinthus Bio chief executive Bill Enright. He will remain as chief executive of the combined group.

Three assets

The combined company’s diversified pipeline will comprise three assets with broad potential for treating metabolic and autoimmune diseases, with an initial focus on three ongoing programs in Type 1 diabetes, Type 2 diabetes and coeliac disease.

Through reversible protein-protein interaction inhibition of menin, CLY101 stimulates the regeneration of pancreatic islets responsible for the secretion of multiple glucose-regulating hormones, including insulin and glucagon, to improve the de novo production of insulin. 

CLY-201 is a highly selective TYK2 inhibitor that targets T-cell-mediated inflammation, which destroys insulin-secreting pancreatic beta cells, an underlying cause of Type 1 diabetes. 

The third programme focuses on VTP-1000, a highly differentiated antigen-specific tolerance immunotherapy designed to prevent or reduce symptoms following gluten exposure in patients with coeliac disease. 

The combined company has been supported by existing cash and additional investments from existing shareholders OrbiMed and Torrey Pines Investment, as well as new investors.