Obesity drug developer Corxel to go public in US via SPAC deal

Oct 26 — Obesity drug developer Corxel Pharmaceuticals will go public ​in the US through a merger with special purpose acquisition company Amanat Acquisition Corp, the ‌companies announced on Monday.

• The success of newer weight-loss therapies has ⁠spurred a wave ​of investments by biotechs looking ⁠to capture a slice of the fast-growing ‌sector dominated by ‌Novo Nordisk and Eli Lilly

• Corxel is expected ⁠to receive roughly $377 million ⁠from the SPAC deal and concurrent private investment in public equity; institutional investors have committed $300 million to it

• The company is advancing oral product candidates; lead candidate CX11 is being developed ‌for obesity, type 2 diabetes ​and related cardiometabolic conditions, with work ongoing to advance it into late-stage development

• The deal is anticipated to close in the first half of 2027; the combined company will likely list on the Nasdaq

• A SPAC is a shell company ​that raises capital through an initial public offering ‌and uses the ‌funds ⁠to merge with or acquire a private company, taking it public without a traditional IPO

• Leerink Partners is serving as lead placement agent for PIPE ‌financing, while Evercore ISI, ​Guggenheim Securities, Cantor and LifeSci ‌Capital are acting as ⁠placement ​agents

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by ​Joyjeet Das)

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