Rallybio Reports No Revenue and $43.7M Net Income in Q2 2026 Amid Merger Plans

Rallybio Corporation reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company recorded no revenue for the quarter, a decrease from $212,000 in the same period last year. For the first half of 2026, total revenue was $212,000, down from $424,000 in the first half of 2025. The decline in revenue is attributed to the expiration of the collaboration agreement with Johnson & Johnson in April 2026, which had previously contributed to the company's revenue stream.

In terms of expenses, Rallybio's total operating expenses for the second quarter of 2026 were $5.7 million, a notable reduction from $10.3 million in the same quarter of 2025. This decrease was primarily driven by a significant reduction in research and development costs, which fell to $758,000 from $6.1 million year-over-year. The company attributed this reduction to the discontinuation of its RLYB212 program and a decrease in clinical and manufacturing costs associated with its lead program, RLYB116. General and administrative expenses increased slightly to $4.9 million, reflecting higher legal and professional fees related to ongoing merger activities.

Rallybio's net income for the second quarter was $43.7 million, a substantial turnaround from a net loss of $9.7 million in the same quarter of the previous year. This increase was largely due to a $50 million termination fee received following the cancellation of a merger agreement with Candid Therapeutics. The company reported an accumulated deficit of $266.6 million as of June 30, 2026, down from $302 million at the end of the previous fiscal year.

On the operational front, Rallybio is in the process of merging with Avenzo Therapeutics, a clinical-stage biotechnology company focused on oncology therapies. The merger is expected to close by the end of 2026 and will result in Rallybio changing its name to Avenzo Therapeutics, Inc. The merger is intended to be a tax-free reorganization and is accompanied by a concurrent financing agreement that aims to raise $215 million for Avenzo. As of June 30, 2026, Rallybio had cash and cash equivalents of $92.8 million, which the company believes will be sufficient to fund its operations for at least the next 12 months.

Looking ahead, Rallybio anticipates that the merger with Avenzo will enhance its capabilities in developing therapies for rare diseases and oncology. However, the company acknowledges that it will require additional capital to fund the development and commercialization of its product candidates, including RLYB116, which is currently in clinical trials. The company remains focused on strategic alternatives and partnerships to support its growth and operational objectives.