BridgeBio Oncology and Helix Announce Merger Agreement

BridgeBio Oncology is set to merge with Helix Acquisition Corp II, forming a new entity named BridgeBio Oncology Therapeutics. This merger agreement, involving significant financial contributions, aims to propel the development of BridgeBio's pharmaceutical initiatives.

The transaction is structured to include $196 million from Helix’s trust fund, complemented by an additional $260 million through a private investment in public equity (PIPE), spearheaded by Cormorant Asset Management. Assuming no shareholder withdrawals, the combined funds from Helix and PIPE are projected to total $450 million. This financial boost is earmarked to support the advancement of three key drug development programs: BBO-8520, BBO-10203, and BBO-11818. Overall, the merger is expected to provide BridgeBio Oncology Therapeutics (BBOT) with $550 million in liquidity.

Eli Wallace, CEO of BBOT, emphasized the significance of this development, expressing gratitude towards trial participants, the company's team, and investors. He stated that this transaction represents a pivotal step in advancing their programs, with the goal of significantly impacting patients battling severe cancers.

Among the drugs under development, BBO-8520 is a KRAS G12C inhibitor currently in the Phase I ONKORAS-101 trial. This trial targets KRAS G12C mutant non-small cell lung cancer. Another program, BBO-10203, which inhibits the RAS-PI3Kα interaction, is undergoing evaluation in the Phase I BREAKER-101 trial. The initial dosing for BBO-11818, a pan-KRAS inhibitor, is slated for the first half of 2025.

Upon closure of the merger, the newly formed BBOT will boast an implied pro forma equity value of $949 million. BBOT shareholders are expected to transfer their entire equity into the new company. The transaction, anticipated to finalize in the third quarter of 2025, has secured the backing of both companies' boards and is pending shareholder approval, alongside standard closing conditions.

Several financial institutions and advisory firms are involved in facilitating this transaction. Leerink Partners and Morgan Stanley, in conjunction with Cantor and Oppenheimer & Co, acted as placement agents for Helix. Meanwhile, Piper Sandler provided capital markets advisory services to BBOT. Legal counsel was offered by Goodwin Procter, White & Case, and Kirkland & Ellis, ensuring all parties involved are well represented and informed.

As the merger progresses, the combined resources and expertise are expected to accelerate the development of BBOT's innovative treatments. This strategic move underscores BBOT's commitment to addressing challenging oncological conditions and highlights the collaborative efforts driving forward advancements in cancer therapy.