Rallybio Reports No Revenue and $2.7 Million Net Loss in Q3 2026

Rallybio Corporation reported its financial results for the third quarter of 2026, revealing a significant shift in its financial performance compared to the same period in 2025. The company recorded no revenue for the three months ended September 30, 2026, a decrease from $212,000 in collaboration and license revenue in the prior year. For the nine months ended September 30, 2026, total revenue was $212,000, down from $636,000 in the same period of 2025. The company continues to operate at a loss, reporting a net loss of $2.7 million for the third quarter, compared to a net income of $16 million in the prior year, largely due to the absence of revenue and a decrease in operating expenses.

Operating expenses for the third quarter of 2026 totaled $3.4 million, a significant reduction from $7.1 million in the same quarter of 2025. This decline was primarily driven by a decrease in research and development expenses, which fell to $584,000 from $4.1 million, reflecting the discontinuation of the RLYB212 program and reduced clinical costs associated with RLYB116. General and administrative expenses also decreased slightly, from $3 million to $2.8 million, as the company continued to streamline operations.

Rallybio's strategic developments included the termination of its merger agreement with Candid Therapeutics in May 2026, which resulted in a $50 million termination fee. Subsequently, the company entered into a merger agreement with Avenzo Therapeutics, aimed at enhancing its oncology portfolio. This merger is expected to close by the end of 2026 and will result in Rallybio changing its name to Avenzo Therapeutics. The merger is anticipated to qualify as a tax-free reorganization, and Avenzo has secured $215 million in concurrent financing to support the transaction.

As of September 30, 2026, Rallybio reported cash and cash equivalents of $90.7 million, a substantial increase from $31.4 million at the end of 2025. This increase is attributed to the termination fee received from the Candid merger and the company's strategic asset sales. The company expects its current cash reserves to fund operations for at least the next 12 months, although it acknowledges the need for additional capital to support the development of its product candidates, particularly RLYB116, which is in early-stage clinical development.

Looking ahead, Rallybio remains focused on advancing its lead product candidate, RLYB116, while navigating the complexities of the upcoming merger with Avenzo. The company is also evaluating additional strategic alternatives to enhance its product pipeline and financial position. Despite the challenges faced, Rallybio's management is optimistic about the potential benefits of the merger and the future of its product candidates in addressing unmet medical needs in rare diseases.