LOUISVILLE, Ky. (WDRB) — A biopharmaceutical company with strong ties to Louisville will live on by merging with another biotech player, though it’s unclear whether the future company will have any local presence.
Talaris Therapeutics, Inc., which grew from the research of University of Louisville surgeon Dr. Suzanne Ildstad, is merging with New York-based Tourmaline Bio, Inc., the companies announced Thursday.
The announcement follows Talaris’ unsuccessful effort to commercialize a stem cell therapy that promised to improve transplant recipients’ tolerance of new organs.
The company, headquartered in Boston, said earlier this year that it was abandoning clinical trials of its therapy in kidney transplant recipients and laying off almost all its employees. The cuts included 51 jobs in Louisville between Talaris’ office and cell processing facility, the company disclosed in April.
Talaris’ CEO and all but one top manager left the company in May while Talaris searched for “strategic alternatives” such as a sale or merger.
Talaris and Tourmaline will combine in an all-stock deal. The combined company, valued at $387 million, will be called Tourmaline.
Despite Talaris’ setbacks, the company had $165 million in cash as of March 31. As part of the deal, Talaris will distribute $65 million back to its shareholders in a dividend before the merger, and contribute the rest to the merged company.
Spokespeople for Talaris and for Tourmaline did not respond to requests for comment on Thursday. Neither did Ildstad, who serves on Talaris’ board.
Dr. Suzanne Ildstad
Ildstad, a transplant surgeon, founded Talaris in 2002 as Regenerex. She was looking to develop a therapy that would suppress the immune response to kidney transplantations, potentially freeing transplant recipients from a punishing medication regiment.
The combined company will work on Tourmaline’s main product candidate, an antibody aimed at treating thyroid eye disease and atherosclerotic cardiovascular disease.
“This merger and the support from leading life sciences investors will allow us to accelerate our development plans,” said Dr. Sandeep Kulkarni, CEO of Tourmaline, in a news release.
