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Switzerland-based Relief Therapeutics Holding SA announced plans on Monday to merge with Renexxion Inc., a U.S. biotechnology company, in a strategic reverse merger that will bring Renexxion to the SIX Swiss Exchange. This partnership aims to leverage both companies’ expertise in developing innovative therapies for unmet medical needs.

Relief Therapeutics to merge with Renexxion : Terms and Structure of the Merger

Relief Therapeutics has signed a nonbinding letter of intent for the transaction, which values Relief at $100 million and Renexxion at $260 million. As part of the merger, Renexxion shareholders will receive new shares in the combined entity, giving them a 72.2% stake, while Relief’s shareholders will retain the remaining 27.8%.

The merger is structured as a reverse merger, with Relief acquiring Renexxion and listing the U.S.-based company on the Swiss exchange. While specific legal counsel for both companies has not been disclosed, the move represents a significant expansion opportunity for Relief.

Strategic Goals: Pipeline Expansion and Market Reach

Relief Therapeutics focuses on treatments for serious diseases with limited existing options, and the merger is expected to broaden its therapeutic pipeline. Renexxion specializes in gastrointestinal (GI) disorder therapies, and its lead candidate, naronapride, is under development for various GI tract disorders. This collaboration will enhance Relief's capabilities and expand its presence in a high-demand area of healthcare.

Raghuram Selvaraju, chair of Relief Therapeutics, described the merger as “an exceptional opportunity to build a more resilient and innovative business.” Renexxion's CEO Peter Milner echoed this sentiment, highlighting the combined potential to "redefine the landscape of gastrointestinal healthcare."

Relief Therapeutics to merge with Renexxion : Path Forward and Regulatory Approval

The companies are targeting a definitive merger agreement by the end of December. Key steps include completing due diligence and securing approval from shareholders and regulators. The companies have not disclosed which regulatory bodies will oversee the merger.

If finalized, the merger will provide Relief Therapeutics with a larger drug pipeline and a stronger market position, positioning the company for further innovation in the treatment of complex diseases.