Aerovate Therapeutics (NASDAQ:AVTE) added ~24% in the pre-market on Thursday after the company agreed to merge with privately held biotech Jade Biosciences in an all-stock transaction.

Concurrently, a group of healthcare investors has agreed to bring in roughly $300M in gross proceeds as part of a private investment in Jade in support of the merger. The deal is expected to close in H1 2025.

Per the terms, Aerovate (NASDAQ:AVTE) shareholders are expected to own nearly 2% of the combined entity, which will trade on Nasdaq under the ticker symbol “JBIO” and operate as Jade Biosciences under the leadership of Jade’s current CEO, Tom Frohlich.

The combined entity is expected to focus on Jade’s pipeline of biologics which includes an experimental antibody therapy named JADE-001, targeted at the kidney disorder, IgA nephropathy.