Rallybio Reports $8.98 Million Net Loss for Fiscal Year 2025, Announces Merger with Candid

Rallybio Corporation, a clinical-stage biotechnology company focused on developing therapies for severe and rare diseases, reported a net loss of $8.98 million for the fiscal year ending December 31, 2025, a significant decrease from a net loss of $57.78 million in 2024. The company attributed this improvement to a reduction in operating expenses, which fell to $33.92 million from $61.13 million in the previous year. This decrease was primarily driven by a $21.91 million reduction in research and development expenses, largely due to the discontinuation of the RLYB212 program for fetal and neonatal alloimmune thrombocytopenia (FNAIT) in April 2025. Collaboration and license revenue increased to $858,000 in 2025, up from $636,000 in 2024, reflecting contributions from a collaboration agreement with Johnson & Johnson.

In a strategic move, Rallybio announced a merger agreement with Candid, a clinical-stage biotechnology company specializing in T-cell engager therapeutics for autoimmune diseases, on March 1, 2026. This merger is expected to be structured as a tax-free reorganization and will result in Candid becoming a wholly-owned subsidiary of Rallybio. Concurrently, investors have committed approximately $505.5 million to purchase shares of Candid common stock, which will convert into Rallybio common stock upon the merger's completion. Following the merger, pre-merger equity holders of Candid are projected to own approximately 57.55% of the combined company, while Rallybio's pre-merger equity holders are expected to hold about 3.65%.

As of December 31, 2025, Rallybio reported cash, cash equivalents, and marketable securities totaling $54.7 million, which the company believes will be sufficient to fund operations into 2028. The company has focused on maintaining a lean operational structure, employing only 14 full-time employees as of the end of 2025. This workforce reduction is part of a broader strategy to conserve cash while advancing its clinical programs, particularly RLYB116, a complement C5 inhibitor that has shown promise in early-stage clinical trials.

Looking ahead, Rallybio's future success hinges on the completion of the merger with Candid and the continued development of its product candidates. The company is currently navigating a complex regulatory landscape, with plans to seek marketing approvals for RLYB116 and other candidates. However, the biotechnology sector remains highly competitive, and Rallybio faces challenges in securing market share and achieving profitability, particularly in the context of ongoing healthcare reforms and pricing pressures. The company’s ability to attract investment and maintain operational momentum will be critical as it seeks to capitalize on its innovative therapies for rare diseases.