Avrobio and Tectonic Therapeutic announce merger

US gene therapy company Avrobio (Nasdaq: AVRO) and privately-held biotech Tectonic Therapeutic today announced that the companies have entered into a definitive merger agreement to combine in an all-stock transaction.

Shares of Avrobio, which already warned last year that it was exploring strategic alternatives for the company, fell as much as much as 20.1% to $1.0, following the new announcement.

Under the terms of the agreement, Avrobio will acquire 100% of the outstanding equity interests of Tectonic. On completion of the merger, the combined company is expected to operate under the name Tectonic Therapeutic, and trade on Nasdaq under the ticker symbol “TECX.”