Chemomab and Scipher to Merge in RA Precision Medicine Push

Chemomab Therapeutics and Scipher Medicine agreed to merge Tuesday, the companies said on a conference call. The deal combines Chemomab's lead drug candidate, Nebokitug, for rheumatoid arthritis with Scipher's molecular profiling platform, which uses a blood test to predict disease progression.

Chemomab is a Nasdaq-listed biotech trading under the ticker CMMB. Scipher is a privately held diagnostics company. The reverse merger will give Scipher a public listing without an IPO, a path several precision medicine companies have taken.

The all-stock transaction will leave Scipher shareholders with a majority stake, the companies said. Chemomab CEO Adi George will step down after the deal closes, and Scipher CEO Reginald Seeto will lead the combined company.

The companies said the combination creates a precision medicine approach in RA, an area where targeted therapies remain rare. Nebokitug is a monoclonal antibody that blocks the CCL24 chemokine, which plays a role in inflammation and fibrosis. Scipher's test measures gene expression and can stratify patients by disease activity.

The concurrent financing will provide the combined company with a cash runway through the expected Phase 2 data readout in the first half of 2027, according to the call. The size of the financing was not disclosed.

Chemomab shareholders are scheduled to vote on the merger in September. The companies expect to close the transaction in the fourth quarter.