Talawar Therapeutics Announces $285 Million Nasdaq Merger Deal

Talawar Tx Inc., a biotechnology company developing next-generation bispecific antibody therapies for immunology and inflammatory diseases, has signed a definitive business combination agreement with JATT II Acquisition Corp., a Nasdaq-listed special purpose acquisition company (SPAC). The transaction is expected to provide the company with approximately $285 million in gross proceeds to support the clinical development of its lead drug candidate, TALA-125.

Following completion of the transaction, the combined company will operate under the name Talawar Therapeutics and is expected to trade on the Nasdaq Capital Market under the ticker symbol “TLWR.” The merger is anticipated to close during the second half of 2026, subject to approval by JATT II shareholders, regulatory clearances, and other customary closing conditions.

The financing is designed to support Talawar through key clinical milestones, including a planned Phase 2b proof-of-concept data readout for TALA-125 in the second half of 2028. According to the companies, the funding is expected to provide sufficient capital to advance the therapy from early clinical testing through mid-stage development.

The transaction includes approximately $60 million held in JATT II’s trust account, assuming no shareholder redemptions, along with a $225 million private investment in public equity (PIPE) priced at $10 per share. The PIPE financing is being led by founding investor Access Biotechnology and includes participation from several well-known life sciences investors, including Bain Capital Life Sciences, Deep Track Capital, RA Capital Management, Janus Henderson Investors, Vianti Capital, and Farallon Capital Management, among others.

Talawar is focused on developing bispecific antibodies that simultaneously target two independent biological pathways involved in inflammatory diseases. Unlike conventional therapies that block a single target, the company’s approach is designed to combine complementary mechanisms into one treatment, with the goal of producing stronger and longer-lasting clinical responses.

Its lead candidate, TALA-125, is being developed for atopic dermatitis, a chronic inflammatory skin disease that affects millions of people worldwide. Although several biologic therapies are available, many patients continue to experience incomplete disease control, highlighting the need for more effective treatment options.

Marc Schegerin, MD, Chief Executive Officer of Talawar Therapeutics, said the company believes current therapies have reached an efficacy ceiling because they focus on only one biological pathway. He noted that TALA-125 was specifically engineered to combine two clinically validated mechanisms within a single bispecific antibody, with the aim of delivering broader and more durable responses for patients with immunology and inflammatory disorders.

The company expects to begin Phase 1 clinical testing of TALA-125 in the first quarter of 2027, with interim Phase 1 data anticipated by the fourth quarter of 2027. If development progresses as planned, the program will advance toward a Phase 2b proof-of-concept study, with results expected in the second half of 2028.

In addition to TALA-125, Talawar is expanding its research pipeline through two earlier-stage discovery programs, TALA-307 and TALA-711, which are being explored for additional immunology indications.

Dan Becker, MD, PhD, Chairman of Talawar’s Board and Managing Director of Access Biotechnology, said the company was established to address significant unmet needs in atopic dermatitis by moving beyond the limitations of single-target therapies. He added that the financing reflects investor confidence in Talawar’s platform and its potential to develop more effective treatments for patients with immune-mediated inflammatory diseases.

If completed as expected, the merger will position Talawar Therapeutics as a publicly traded biotechnology company with substantial financial backing to advance its bispecific antibody pipeline through multiple clinical milestones over the next several years.