Ikena Oncology (IKNA) and clinical-stage biotechnology company Inmagene Biopharmaceuticals said Monday they have agreed to merge that will result in the latter owning about 43.5% of the combined company.

Ikena stockholders will own about 34.8%, and the financing investors some 21.7%, the companies said.

The merged entity intends to operate under the ImageneBio name and trade on Nasdaq under the IMA ticker. It will focus on the development of IMG-007 to treat atopic dermatitis, a skin condition that causes dry, itchy and inflamed skin. The companies said IMG-007's phase 2b clinical trial in atopic dermatitis is expected to start early next year.

Under the terms of the deal, Inmagene shareholders will receive contingent value rights for its non-IMG-007 assets, while Ikena shareholders will receive contingent value rights for the company's legacy pipeline assets.

In connection with the deal, Ikena has signed subscription agreements for a $75 million private placement with a syndicate that includes certain new and existing investors. The board-approved deal is expected to close in mid-2025.

The company's shares were up more than 14% in recent trading.

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