Magenta Therapeutics to merge with Dianthus in all-stock deal

• Magenta Therapeutics (NASDAQ:MGTA) added ~5% pre-market Wednesday in reaction to its plans to combine with privately-held clinical-stage biotech Dianthus Therapeutics in an all-stock merger deal.
• Per the terms, after the completion of the transaction, the combined company is expected to trade on the Nasdaq under the ticker symbol “DNTH” and operate as Dianthus Therapeutics.
• The combined company is set to focus on developing Dianthus’ pipeline, including its Phase 1 autoimmune candidate DNTH103.
• In support of the deal, a group of healthcare investors, including Fidelity Management & Research Company, has agreed to a $70M private investment in exchange for Dianthus’ common stock and pre-funded warrants.
• Backed by the liquidity position of both companies and funding from the private placement, the cash or cash equivalents of the combined company are expected to reach $180M immediately after the closing of the transaction. The cash resources are anticipated to fund operations into mid-2026.
• The transaction and related financing is expected to close in Q3 2023.

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