BRIEF—Chondrial Therapeutics and Zafgen complete merger

US biotech firms Chondrial Therapeutics and Zafgen today announced the completion of their merger.

The combined, publicly traded clinical-stage biotechnology company will operate under the name Larimar Therapeutics and its shares will commence trading on the Nasdaq Global Market on May 29, 2020, under the ticker symbol “LRMR.”

The combined company also announced it has secured funding commitments in a private placement financing of common stock (or pre-funded warrants to purchase common stock in lieu thereof) for $80 million of gross proceeds before placement agent fees and expenses. The financing is being led by Cowen Healthcare Investments.

Together with approximately $40 million in cash on Zafgen’s balance sheet at the time of the merger, the combined company has approximately $116 million in cash.

Dr Carole Ben-Maimon, president and chief executive of Larimar Therapeutics, said: “We believe our lead product candidate, CTI-1601, has the potential to become the first frataxin replacement therapy for patients with Friedreich’s ataxia. We are honored to have the support of both Chondrial’s and Zafgen’s existing shareholders, as well as new support from such a strong and respected syndicate of investors. We are also pleased to welcome our new directors and leadership team members, whose guidance will be instrumental as we transition to a publicly traded company and continue to advance CTI-1601’s clinical development as a potential treatment for patients with Friedreich’s ataxia, a rare disease which currently has no approved medical treatment options.”