Barinthus Bio and Clywedog Therapeutics Announce Reverse Merger, Advancing Clinical Assets in Diabetes and Autoimmune Disease

In a significant move within the pharmaceutical industry, U.S.-based Barinthus Biotherapeutics and U.K. biotech Clywedog Therapeutics have announced a reverse merger. The combined entity, which will operate under the Clywedog name and trade on the Nasdaq as "CLYD," aims to advance three clinical assets targeting diabetes and autoimmune diseases.

Merger Details and Financial Implications

The merger, unanimously approved by both companies' boards and awaiting stockholder approval, is expected to close in the first half of 2026. Upon completion, Barinthus shareholders will own approximately 34% of the new company, with Clywedog stockholders holding the remaining 66%.

Prior to closing, the combined company may extend a partial tender offer to acquire Barinthus shares for up to $27 million. The new entity is set to receive investments from existing Clywedog shareholders OrbiMed and Torrey Pines Investment, along with unnamed new investors, providing an estimated cash runway through 2027.

Clinical Assets and Development Pipeline

The merged company will focus on advancing three key clinical assets:

1. CLY-101 (balomenib): A menin inhibitor being evaluated for long-term glucose control in Type 2 diabetes and insulin production restoration in Type 1 diabetes. Phase 2a studies for both diabetes types are expected to yield results in the second half of 2026. The company is also exploring potential combination therapy with GLP-1 agonists like Ozempic.

2. CLY-201: A TYK2 inhibitor targeting T-cell mediated inflammation, being assessed as a preventive measure to slow inflammation leading to Type 1 diabetes. A midstage study is planned to evaluate safety, glycemic control, and circulating C-peptide levels in Type 1 diabetes patients.

3. VTP-1000: Barinthus' contribution, an antigen-specific tolerance immunotherapy for celiac disease, designed to prevent or reduce symptoms after gluten exposure. A phase 1 study is ongoing, with topline data from the single ascending dose portion expected by the end of 2025.

Leadership and Strategic Direction

Bill Enright, current CEO of Barinthus, will lead the combined company. Iain Dukes, Clywedog's CEO and OrbiMed venture partner, is slated to become executive chair of the board of directors. The merger represents a strategic pivot for Barinthus, which has faced challenges in recent years, including pipeline setbacks and significant workforce reductions.

The newly formed company will leverage Clywedog's artificial intelligence platform to accelerate the discovery and development of potentially best- or first-in-class therapies, signaling a commitment to innovation in the competitive pharmaceutical landscape.