TLDR
- NXTC stock jumps 218% after announcing Avere merger agreement
- Avere secures $320M financing to advance AVR-001 clinical trials
- Combined company will trade on Nasdaq under the AVRX ticker
- AVR-001 targets IL-23 with once-weekly oral dosing approach
- NextCure holders receive CVRs tied to future pipeline monetization
NextCure, Inc. (NASDAQ: NXTC) shares surged 217.66% to $6.89 after the company announced a merger agreement with Avere Therapeutics. The stock jumped sharply during early trading before easing slightly and stabilizing near $6.87. Moreover, the transaction pairs Avere’s oral IL-23 program with NextCure’s public listing and includes a concurrent $320 million private placement.
NextCure and Avere Plan Reverse Merger and Nasdaq Transition
NextCure signed a definitive all-stock merger agreement with privately held Avere Therapeutics. Consequently, the combined company expects to operate as Avere Therapeutics after closing. It also plans to trade on the Nasdaq under the ticker symbol AVRX.
The companies expect to complete the transaction during the second half of 2026. However, the merger remains subject to shareholder approvals, regulatory filings, and customary closing conditions. The agreement also requires the effectiveness of a registration statement with the U.S. Securities and Exchange Commission.
The merger combines Avere’s lead oral IL-23 candidate, AVR-001, with NextCure’s public market platform. The transaction aims to accelerate clinical development across inflammatory disease programs. The combined company will also adopt Avere’s management team after closing.
$320 Million Financing Supports Clinical Development Pipeline
A concurrent private placement secured $320 million from institutional participants led by Fairmount and Hansoh Pharmaceutical Group. The financing includes $251 million in convertible notes that will convert into common stock at closing. The capital should fund operations through multiple planned clinical milestones.
The funding supports a global Phase 2b psoriasis trial, a Phase 3 psoriasis study, and a Phase 2b ulcerative colitis trial. Avere recently secured exclusive ex-Greater China rights for AVR-001 through a licensing agreement with Hansoh. Hansoh will receive $120 million in upfront payments and remains eligible for milestone payments totaling up to $2.18 billion.
AVR-001 targets the IL-23 receptor through a cyclic peptide design and supports once-weekly oral dosing. The candidate demonstrated encouraging Phase 1b psoriasis data after four weeks of treatment. The program also showed a safety profile supporting continued clinical development.
Ownership Structure, Leadership, and Strategic Background
Following completion, pre-merger Avere shareholders will own about 98.79% of the combined company. existing NextCure shareholders will hold approximately 1.21% subject to adjustment based on NextCure’s net cash. Eligible NextCure shareholders will also receive contingent value rights tied to future pipeline monetization proceeds.
Andrew Cheng will lead the combined company as Chief Executive Officer after the merger closes. Avere’s current board will become the board of the combined company. Nimish Shah from Venrock Healthcare Capital Partners also expects to join the board before closing.
NextCure originally focused on developing immunotherapy treatments for cancer and immune-related diseases. The merger shifts the company’s direction toward oral therapies for IL-23 driven inflammatory diseases. The agreement marks a major strategic transition while providing funding for late-stage clinical development and future commercialization plans.
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