Alaunos Buys Velaris and Raises $350M for PAH Pipeline

Alaunos Therapeutics completed its acquisition of Velaris Therapeutics alongside a $350 million private placement, funding its pulmonary arterial hypertension pipeline into 2029 and reshaping its board.

"We are pleased to announce the acquisition of Velaris. We believe this transaction and the concurrent private placement provide a strong financial foundation for us to advance an exciting pipeline and offer our stockholders a compelling opportunity to realize value, with proof-of-concept data for VLR199 expected in 2028," said Holger Weis, CEO and Chairman of the Board of Directors of Alaunos, according to a company release.

Financing and Institutional Backing

The transaction centers on a concurrent private placement of Series C non-voting convertible preferred stock, which raised approximately $350 million in gross proceeds for Alaunos Therapeutics Inc.

The financing drew participation from a broad group of healthcare and biotech institutional investors. The round was led by Fairmount, with investments from:

• Venrock Healthcare Capital Partners
• T. Rowe Price Investment Management Inc. advised accounts
• Wellington Management
• Janus Henderson Investors
• Access Biotechnology
• BB Biotech
• Perceptive Advisors
• Sirenia Capital Management LP
• ADAR1 Capital Management

Pipeline Timeline and Clinical Milestones

The newly acquired pipeline targets pulmonary arterial hypertension (PAH) and related cardiopulmonary diseases through assets such as VLR199, VLR360, VLR247, and VLR258.

"We aim to transform the treatment of pulmonary hypertension, starting with PAH," said Michael Henderson, MD, President of Velaris, in a statement.

The $350 million in gross proceeds is projected to extend company operations into 2029. Management plans to use the capital to generate proof-of-concept data sets for VLR199 and VLR360, while filing initial regulatory paperwork for VLR247 and VLR258. Clinical proof-of-concept data for lead candidate VLR199 is slated for release in 2028.

Board and Governance Changes

Governance is shifting alongside the capital injection. Peter Harwin, Founding Partner of Fairmount, has joined the Alaunos Board of Directors.

Following a planned stockholder meeting to approve the conversion of the Series C non-voting convertible preferred stock into common stock, three current directors will step down. They will be replaced by three Fairmount-designated appointees. Upon completion of these moves, total common shares on an as-converted basis will reach approximately 358.59 million.