Rallybio Corporation

What they do

Rallybio is a clinical-stage biotechnology company developing therapies for severe and rare diseases. Its lead program, RLYB116, is a differentiated complement component 5 (C5) inhibitor intended for diseases of complement dysregulation, including immune platelet transfusion refractoriness and refractory antiphospholipid syndrome. Its second program, RLYB332, is a long-acting matriptase-2 antibody in preclinical development for diseases of iron overload. The company has no approved products and reports minimal collaboration revenue.

Revenue drivers

• Collaboration revenue — Revenue is limited to collaboration and licensing arrangements, including prior Johnson & Johnson collaboration obligations; 2025 annual revenue was $858 thousand versus $636 thousand in 2024.
• RLYB116 (C5 inhibitor) — Lead clinical program, not yet commercialized; no product revenue has been recognized from it.
• RLYB332 (MTP-2 antibody) — Preclinical program for iron overload; generates no revenue today.
• REV102 interest sale — Rallybio generated a total of $20 million from Recursion Pharmaceuticals for its interest in REV102, including $7.5 million upfront and $12.5 million tied to initiation of additional preclinical studies; this was a one-time transaction, not recurring revenue.

Recent performance

For the third quarter of 2025, Rallybio reported revenue of $0.2 million, down from $0.3 million a year earlier, and net income of $16.0 million, or $0.36 per share, versus a net loss of $11.5 million, or $0.26 per share, in the prior-year period. R&D expenses fell to $4.1 million from $8.2 million and G&A expenses fell to $3.0 million from $4.1 million, mainly due to lower headcount after a May 2025 workforce reduction and lower development costs for RLYB212 and other candidates, partly offset by higher RLYB116 costs. Cash, cash equivalents and marketable securities were $59.3 million as of September 30, 2025. Annual net loss narrowed to $9.0 million in 2025 from $57.8 million in 2024. In the second quarter of 2026, revenue was $0.00 million, and cash and equivalents stood at $92.8 million as of June 30, 2026.

Strategy

Rallybio completed dosing of Cohort 1 in the RLYB116 Phase 1 confirmatory PK/PD study in September 2025 and reported data in the fourth quarter of 2025, with the program targeted at immune platelet transfusion refractoriness and refractory antiphospholipid syndrome. The company strengthened its balance sheet with $20 million of non-dilutive proceeds from selling its interest in REV102 to Recursion. On March 1, 2026, Rallybio signed a merger agreement with Candid Therapeutics, but Candid terminated it on May 3, 2026 and entered a permitted alternative agreement with UCB S.A.; Rallybio received a $50.0 million termination fee plus $0.4 million of expense reimbursement. Rallybio then restarted its strategic review and on May 31, 2026 signed a merger agreement with Avenzo Therapeutics, under which Avenzo will survive as a wholly owned subsidiary and Rallybio will be renamed Avenzo Therapeutics, Inc., alongside a $215.0 million concurrent financing. Under the Avenzo deal, pre-merger Avenzo equityholders are expected to own the substantial majority of the combined company, with Rallybio pre-merger holders retaining a small minority stake.

Risks

• Merger execution risk — The Candid merger was terminated before closing, and the pending Avenzo merger remains subject to closing conditions, so the transaction may not be completed on the contemplated terms or at all.
• No product revenue and clinical-stage dependence — Rallybio has no approved products, and its prospects depend on RLYB116 and preclinical RLYB332, which may fail in development.
• Cash burn and financing needs — Operating cash flow was negative every year from 2021 through 2025, including -$29.8 million in 2025, requiring continued capital.
• Listing and ownership dilution — The company received a delisting notice or listing-rule failure on August 29, 2025, and pre-merger Rallybio equityholders are expected to own only about 3.65% of the combined company in the terminated Candid deal structure.

Outlook

Management has not yet provided detailed go-forward guidance for the Avenzo combined company in the excerpts provided. Previously, Rallybio said it expected cash, cash equivalents and marketable securities to support operations through 2027, based on the $59.3 million balance at September 30, 2025. RLYB116 Phase 1 confirmatory PK/PD data were expected in the fourth quarter of 2025. The pending Avenzo merger and related $215.0 million concurrent financing are the principal strategic items ahead, subject to closing conditions.