San Diego-based Skye Bioscience, Inc. (Nasdaq: SKYE) and UK-based Redx Pharma Limited have agreed to combine in a transaction that will effectively give Redx’s fibrosis pipeline and management team a Nasdaq-listed vehicle, alongside approximately USD 125 million in concurrent financings. The combined company will operate as Fibrx Therapeutics, with existing Redx shareholders owning approximately 46.17% and existing Skye shareholders just 5.38%
The deal follows Skye’s decision in Q2 2026 to discontinue its Phase IIa CBeyond obesity trial of nimacimab and pause development of the CB1-targeting antibody after reassessing its commercial prospects. Redx’s management team will lead Fibrx, its directors will comprise a majority of the board, and the company will be headquartered at Redx’s existing Alderley Park site. Financing investors are expected to own the remaining 48.45%
Concurrent financings are expected to provide approximately USD 125 million in aggregate gross proceeds, including a USD 68 million PIPE and USD 36 million Redx Series A financing. The combined company’s cash is expected to fund operations into 2029 and through topline results from the RXC008 Phase II study, expected in H2 2028
The lead asset, RXC008, is a GI-restricted pan-ROCK inhibitor (rho-associated protein kinase inhibitor) in development for fibrostenotic Crohn’s disease, an indication with no currently approved therapy targeting the underlying fibrotic mechanism. RXC008 holds FDA Fast Track designation and an open US investigational new drug (IND) application, and is set to commence a Phase II study in H2 2026, with topline data expected in H2 2028. The pipeline also includes zelasudil (RXC007), a selective ROCK2 inhibitor that completed a Phase II signal-searching study in idiopathic pulmonary fibrosis (IPF) and is being positioned for partnering, and a preclinical discoidin domain receptor (DDR) inhibitor program with an IND submission targeted for 2027. Redx previously sold its KRAS inhibitor program to Jazz Pharmaceuticals for USD 10 million upfront and up to USD 870 million in milestones.
Skye discontinued its CBeyond Phase IIa trial for nimacimab, a CB1 receptor inhibitor for obesity, in Q2 2026 following a review of the competitive landscape, and had been evaluating strategic alternatives. A Nasdaq press release will be issued imminently in relation to that decision. Pre-transaction Skye shareholders will receive one contingent value right (CVR) per share, entitling them collectively to 90% of net proceeds from any monetization of nimacimab within 12 months of closing. The transaction is expected to close in Q4 2026, subject to shareholder approvals from both companies and court sanction of the UK scheme of arrangement.
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