Lisata Therapeutics, Inc. (NASDAQ:LSTA) on Thursday announced it has acquired clinical-stage biotechnology company Marea Therapeutics, Inc. alongside an oversubscribed $225 million private placement financing.
The transaction expands Lisata’s portfolio into first-in-class cardioendocrine therapeutics developed through human genetics.
“After a thorough review of strategic alternatives, the acquisition of Marea marks a significant milestone for Lisata as we broaden our focus toward advancing Marea’s product candidate portfolio, which addresses significant unmet need across a range of cardioendocrine diseases,” said David Mazzo, CEO of Lisata.
Private Placement Financing Details
The concurrent private placement involves selling Series C non-voting convertible preferred stock at approximately $1,491.37 per share, representing $1.4914 per common share on an as-converted basis.
Following the stock-for-stock acquisition, Marea equity holders received 1.79 million Lisata common shares and 211,365.213 Series C preferred shares.
Post-transaction, existing Lisata equity holders will own roughly 2.39% of the company, former Marea equity holders will hold 59.54%, and private placement investors will hold 38.07% on an as-converted basis.
Clinical Pipeline And Capital Allocation
Lisata plans to use the net proceeds primarily to fund drug candidates MAR001/005 and MAR002 through critical clinical milestones.
This includes completing an ongoing Phase 2b trial in severe hypertriglyceridemia and a Phase 2 trial in acromegaly.
Topline data for both studies is anticipated in the fourth quarter of 2027. The company will utilize the remaining proceeds for general corporate operations.
Governance And Stockholder Approval
Boards from both companies and Marea stockholders approved the transaction.
Lisata stockholders will vote at a future meeting to approve converting Series C preferred shares into common stock at a 1-to-1,000 ratio.
In August, Lisata Therapeutics filed suit against Kuva Labs Inc. against Kuva’s breach of the previously disclosed merger agreement.
In order to reduce operating expenses and preserve cash to pursue strategic alternatives, Lisata has implemented a reduction in force, eliminating approximately 72% of its full-time employees, including its Executive Vice President of R&D and Chief Medical Officer position.
LSTA Price Action: Lisata Therapeutics shares were up 20.41% to $1.77 at the time of publication on Thursday, according to Benzinga Pro data.
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