UCB to Acquire Candid for up to $2.2B, Expanding Presence in TCE Antibodies for Immunology

UCB has agreed to acquire Candid Therapeutics for up to $2.2 billion, the companies said, in a deal to expand the buyer’s presence in T-cell engager (TCE) antibodies designed for immunology indications by adding Candid’s pipeline of bispecific and trispecific antibody candidates.

The deal upends plans announced in March by Candid to enter a reverse merger with Rallybio, in which Rallybio would have acquired Candid but retained Candid’s name and created new shares to be traded on NASDAQ. The new company was to have developed Candid’s pipeline using $505 million in concurrent financing from a syndicate of healthcare institutional investors and mutual funds.

Based in San Diego, privately held Candid’s pipeline of autoimmune and inflammatory disease candidates includes treatments licensed from Chinese biotechs.

Candid’s lead asset, cizutamig, is a bispecific antibody for autoantibody-driven autoimmune diseases. Licensed from Shanghai-based EpimAb Biotherapeutics, cizutamig is directed to B-cell maturation antigen (BCMA) on plasma cells and CD3 on T cells, with the aim of enabling T-cell–mediated cytotoxicity against both kinds of cells while limiting cytokine release. Cizutamig is currently in multiple Phase I clinical studies in over 10 autoimmune indications, with clinical evaluation in more than 100 patients with multiple myeloma (completed with 40 patients) and autoimmune diseases (68 patients across multiple indications in China and Europe).

Also in Phase I development within Candid’s pipeline is CND261, a CD20 x CD3 bispecific antibody TCE that the company licenses from Shanghai-based Genor Biopharma. CND261 is being developed to treat autoimmune diseases by targeting a variety of B-cell subtypes, from pro-B-cells to plasmablasts/plasma cells. Candid has completed a 93-patient Phase I dose escalation study of CND261 in non-Hodgkin’s lymphoma (NHL).

The rest of Candid’s pipeline consists of two preclinical candidates in IND-enabling studies:

• CND319, a CD19xCD20xCD3 trispecific antibody designed to target the CD19 and CD20 antigens on a broad range of B-cell subtypes, and licensed from WuXi Biologics last year for up to $925 million in upfront and milestone payments, plus royalties.
• CND460, a BCMAxCD19xCD3 trispecific antibody designed to target the BCMA and CD19 antigens on a broad range of B-cell subtypes.

CND261, CND319, and CND460 represent a pipeline of multi-specific TCE antibodies designed to enable deep, targeted depletion of pathogenic B cell populations in immune-mediated diseases to achieve immune reset—what UCB termed a modular, multi-antigen targeting strategy to address complementary B-cell subsets.

“We started Candid with the goal to redefine the standard of care for immune-mediated diseases. We purposefully built a broad portfolio of TCE assets against a number of clinical indications,” stated Ken Song, MD, Candid’s chairman, CEO, and president. Previously, as president, CEO, and board director of radiopharmaceutical developer RayzeBio, Song negotiated the approximately $4.1 billion sale of the company to Bristol Myers Squibb, completed in 2024.

“Our focus has been to efficiently generate clinical data so as to identify where our TCEs could provide maximal clinical benefit for the broadest number of patients,” Song explained.

Investors appeared less enthusiastic about the deal. UCB stock is traded primarily on Euronext Brussels, where the company’s shares barely budged Monday, dipping 0.65% to €228.30 ($267.28) as of 10:37 am ET.

Platform-based strategy

UCB’s plan to acquire Candid comes roughly two months after the Belgian biotech giant agreed to license exclusive global rights to further develop, manufacture, and commercialize Hong Kong-based Antengene’s ATG-201, a CD19 and CD3 bispecific TCE antibody designed to target B cell-related autoimmune diseases. UCB agreed to pay Antengene $80 million in upfront and near-term milestone payments, plus up to approximately $1.1 billion in payments tied to achieving development and commercial milestones under the agreement, which also granted UCB access to Antengene’s associated manufacturing technology in relation to ATG-201.

UCB said its planned acquisition of Candid, plus the Antengene deal, reflects a platform-based strategy of complementary investments intended to expand its reach across multiple B-cell targets and disease mechanisms, thus strengthening its ability to address antibody-mediated autoimmune diseases through multiple approaches rather than relying on a single asset or modality.

“This acquisition demonstrates our inorganic innovation strategy in action and marks a pivotal moment for UCB, as we secure a significant technological advancement in the field with the addition of cizutamig to our pipeline,” UCB CEO Jean-Christophe Tellier said in a statement. “This exemplifies the next wave of therapies to treat immune-mediated diseases and reflects our commitment to setting new standards to achieve immune reset.

Tellier added that UCB considers cizutamig “a potential transformative asset, that complements our existing programs, and is poised to redefine treatment expectations for severe, underserved immune-mediated diseases, offering the potential to deliver meaningful improvements in patient outcomes and quality of life.”

UCB has agreed to pay Candid $2 billion upfront and up to $200 million in potential future milestone payments. The transaction is subject to closing conditions that include antitrust clearance and other customary conditions and is expected to close by the end of the second quarter or early Q3 2026.

The deal is good news for Two River and Vida Ventures, funds that played central roles in the creation and early development of Candid, which was launched in 2024 with more than $370 million in capital. Two River, together with Third Rock Ventures, helped found Candid, which was created through the merger of Two River-founded TRC 2004 and Vignette Bio.

“This outcome reflects the power of bringing together bold science, disciplined company building, and the right strategic partners,” said Arie Belldegrun, MD, founder and senior managing director of Vida Ventures, chairman of Two River, and co-founder of Bellco Health.

UCB added that it expects the anticipated financial impact of the Candid acquisition to be “manageable.” The company has not changed its most recent 2026 guidance, which calls for revenue growth in the high single‑digit to low double‑digit range at constant exchange rates, while underlying profitability, measured by “adjusted” earnings before interest, taxes, depreciation, and amortization (EBITDA), which excludes one-time expenses, is expected to increase in the high single‑digit to mid‑teens range.

“UCB’s successful track record in immunology, including development, launch, and commercialization, will enable the continuation of our clinical programs and help deliver on the potential for our pipeline,” Song added.

The post UCB to Acquire Candid for up to $2.2B, Expanding Presence in TCE Antibodies for Immunology appeared first on GEN – Genetic Engineering and Biotechnology News.