Talawar's SPAC merger secures USD 285m to advance dual-pathway atopic dermatitis bispecific

New York-based Talawar Therapeutics has [announced a definitive business combination agreement](https://www.prnewswire.com/news-releases/talawar-therapeutics-and-jatt-ii-acquisition-corp-announce-definitive-business-combination-agreement-to-create-publicly-listed-biotechnology-company-developing-potentially-best-in-class-bispecifics-for-ii-diseases-302812610.html) with JATT II Acquisition Corp (Nasdaq: JATT), a Cayman Islands-incorporated SPAC, in a transaction expected to provide up to USD 285 million to advance its lead bispecific antibody, TALA-125, into mid-stage clinical development. Talawar's lead asset, TALA-125 is an anti-IL-13 × anti-IL-18 bispecific antibody targeting atopic dermatitis. Upon closing, expected in H2 2026, the combined company will trade on Nasdaq under the ticker "TLWR." Total expected proceeds at closing are USD 285 million, prior to transaction costs. This comprises USD 60 million held in JATT II's trust account and a concurrent, oversubscribed USD 225 million PIPE of common stock priced at USD 10.00 per share. The PIPE is led by founding investor Access Biotechnology and includes Bain Capital Life Sciences, Deep Track Capital, RA Capital Management, Janus Henderson Investors, Vianti Capital, and Farallon Capital Management. Available cash at closing is anticipated to fund TALA-125 through a Phase IIb proof-of-concept data readout in H2 2028. No milestone payments, royalties, or contingent value rights were disclosed. The transaction is subject to JATT II shareholder approval and customary regulatory conditions. TALA-125 simultaneously targets IL-13 and IL-18 to address complementary inflammatory pathways implicated in atopic dermatitis, with the goal of improving efficacy over existing IL-4Rα and IL-13 inhibitors. The molecule is expected to enter Phase I in Q1 2027, with interim data anticipated in Q4 2027. Talawar is the first company formed to develop and commercialize assets discovered by Khanda Therapeutics, L.P., a US-based biotech company builder. Two additional discovery-stage programs, TALA-307 and TALA-711, are also in the pipeline for other immunology indications. The competitive landscape in atopic dermatitis bispecifics is intensifying. [Triveni Bio recently raised USD 65 million](https://allsci.com/news/funding/venture-financing/triveni-bio-secures-usd-65-million-to-expand-first-in-class-bispecific-antibody-into-atopic-dermatitis/) to advance TRIV-573, a dual IL-13 × KLK5/7 bispecific, in the same indication, while [Bionyra launched with USD 165 million](https://allsci.com/news/funding/venture-financing/bionyra-launches-with-usd-165m-to-challenge-tl1a-incumbents-in-inflammatory-disease/) to develop BYN-003, a TL1A × IL-23p19 bispecific for inflammatory disease — both reflecting the broader thesis that orthogonal pathway combinations can outperform monotherapy. The SPAC-plus-PIPE go-public structure used here has precedent in recent biotech listings: [Remix Therapeutics used a similar reverse-merger vehicle alongside a concurrent PIPE](https://allsci.com/news/ma/remix-therapeutics-takes-nasdaq-listing-through-passage-bio-reverse-merger-usd-100m-raise/) to access Nasdaq, demonstrating that the mechanism can deliver meaningful capital at scale for pre-clinical-to-Phase I stage assets. The financing is expected to fund Talawar through a planned Phase IIb proof-of-concept readout in H2 2028, which will represent the next major clinical value inflection for the program. *** This article was generated with AI assistance and reviewed and edited by the AllSci editorial team Explore more at AllSci News: [https://allsci.com/news/](https://allsci.com/news/) --- Spot something wrong? [Report an issue with this article](https://newsgen-prod.reframedata.com/feedback/talawar-spac-merger-talawars-secures-usd-285m-to)