Crescent Biopharma is poised to enter the public market through a reverse merger with GlycoMimetics, as announced by the companies on Tuesday. Despite being more than a year away from clinical trials, Crescent aims to leverage investor interest sparked by recent advancements in cancer drug development, particularly the impressive performance of Summit Therapeutics’ ivonescimab against Merck’s Keytruda in a crucial Phase 3 study. Upon the merger’s closure, expected in the second quarter of 2025, Crescent will inherit GlycoMimetics’ name and Jonathan Violin, the current CEO of Crescent, will take over as interim CEO of the merged entity. Additionally, Crescent will benefit from $200 million in capital contributed by various investors, committed to purchase securities immediately post-merger.
Crescent’s primary focus is on developing CR-001, a bispecific antibody designed to target cancer by binding to both the PD-1 receptor and the VEGF protein, similar to Summit’s ivonescimab. This dual-targeting mechanism is believed to enhance the drug’s effectiveness and safety by potentially reducing systemic toxicity through localization at the tumor site. As Crescent proceeds with preclinical research, it plans to file for an investigational new drug application by late next year or early 2026, with hopes to present preliminary clinical data in the second half of 2026. By drawing parallels between its own drug and the successful ivonescimab, Crescent aspires to expedite development and strengthen its case to investors, indicating that even limited initial data could be indicative of CR-001’s potential due to its similarity to ivonescimab.
The strategy to emphasize the similarities between CR-001 and ivonescimab is based on the latter’s success in outperforming Keytruda, a leading drug in a market worth approximately $50 billion. This approach reflects Crescent’s intent to position itself competitively within the burgeoning field of next-generation checkpoint inhibitors, a market currently experiencing vigorous growth and innovation, not unlike recent developments in treatments for conditions such as obesity.
In addition to CR-001, Crescent is exploring other preclinical candidates from its pipeline, including antibody drug conjugates, CR-002, and CR-003. These drugs are still under wraps with few details shared publicly, though CR-002 is touted as potentially being a first-in-class therapy targeting a “highly compelling pathway.”
Before the merger, GlycoMimetics focused on small molecule therapies for cancers and inflammatory diseases. Its main candidate, uproleselan, aimed at treating advanced acute myeloid leukemia, faced a setback when the FDA required an additional clinical trial. Following this development, GlycoMimetics reduced its workforce and initiated a search for strategic alternatives. Crescent plans to evaluate future directions for uproleselan after taking over.
Crescent emerged from Paragon Therapeutics, a biotech research firm responsible for creating several companies, including the noteworthy Apogee Therapeutics which successfully raised over $300 million in a traditional IPO before commencing Phase 1 testing. Crescent’s partnership and funding are backed by a mix of well-known investors such as Fairmount, Venrock Healthcare Capital Partners, BVF Partners, and others, underscoring strong financial and strategic support. This extensive backing, combining investments from multiple respected firms, should poise Crescent to sustain its operations well into 2027.
Once the merger transaction is complete, Crescent’s stockholders are poised to control 96.9% of the new entity, with GlycoMimetics’ shareholders holding the remaining 3.1%. This new setup not only reflects Crescent’s considerable leverage in the negotiation but also signals the company’s transformation into a publicly traded entity equipped with substantial resources to advance its innovative cancer treatment pipeline. Such financial and strategic alignment is set to propel Crescent through the precarious early drug development phases towards delivering on its promising cancer therapies.
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