Salarius Pharmaceuticals (NASDAQ: SLRX) and Decoy Therapeutics announced a definitive merger agreement. Decoy’s IMP3ACT™ platform uses AI and ML for rapid peptide conjugate drug design. The combined company, to be named Decoy Therapeutics, will focus on developing peptide conjugate therapeutics for respiratory viruses and cancer.
Decoy has secured $7 million in non-dilutive funding from federal governments, corporations, and The Bill & Melinda Gates Foundation. Salarius’ oral small molecule protein degrader SP-3164 will be integrated into Decoy’s pipeline. The new entity will be led by Decoy’s co-founders and include executives from both companies.
Decoy aims to file an IND for a pan-coronavirus antiviral within 12 months. The merger is expected to create multiple value-creating inflection points, enhancing shareholder value. Ongoing development of Salarius’ seclidemstat for hematologic cancers will continue, with strategic alternatives being evaluated.
Salarius Pharmaceuticals (NASDAQ: SLRX) e Decoy Therapeutics hanno annunciato un accordo di fusione definitivo. La piattaforma IMP3ACT™ di Decoy utilizza l’IA e il ML per un rapido design di farmaci coniugati a peptidi. La società combinata, che sarà chiamata Decoy Therapeutics, si concentrerà sullo sviluppo di terapie coniugate a peptidi per virus respiratori e cancro.
Decoy ha ottenuto 7 milioni di dollari in finanziamenti non diluiti da governi federali, aziende e dalla Bill & Melinda Gates Foundation. Il degrader proteico a piccole molecole orale di Salarius, SP-3164, sarà integrato nel pipeline di Decoy. La nuova entità sarà guidata dai cofondatori di Decoy e includerà dirigenti di entrambe le aziende.
Decoy mira a presentare un’indicazione nuova (IND) per un antivirale pan-coronavirus entro 12 mesi. Si prevede che la fusione crei molteplici punti di contatto che generano valore, aumentando il valore per gli azionisti. Lo sviluppo continuo di seclidemstat di Salarius per i tumori ematologici proseguirà, mentre saranno valutate alternative strategiche.
Salarius Pharmaceuticals (NASDAQ: SLRX) y Decoy Therapeutics anunciaron un acuerdo de fusión definitivo. La plataforma IMP3ACT™ de Decoy utiliza IA y ML para el diseño rápido de medicamentos conjugados de péptidos. La empresa combinada, que llevará por nombre Decoy Therapeutics, se centrará en el desarrollo de terapias de péptidos conjugados para virus respiratorios y cáncer.
Decoy ha asegurado 7 millones de dólares en financiamiento no dilutivo de gobiernos federales, corporaciones y la Fundación Bill y Melinda Gates. El degradador de proteínas a moléculas pequeñas orales de Salarius, SP-3164, se integrará en la cartera de Decoy. La nueva entidad será liderada por los cofundadores de Decoy e incluirá ejecutivos de ambas empresas.
Decoy tiene como objetivo presentar una solicitud IND para un antiviral pan-coronavirus dentro de los próximos 12 meses. Se espera que la fusión genere múltiples puntos de inflexión que creen valor, mejorando el valor para los accionistas. El desarrollo continuo de seclidemstat de Salarius para cánceres hematológicos continuará, mientras se evalúan alternativas estratégicas.
살라리우스 제약(SALARIUS Pharmaceuticals, NASDAQ: SLRX)과 데코이 테라퓨틱스(Decoy Therapeutics)는 최종 합병 계약을 발표했습니다. 데코이의 IMP3ACT™ 플랫폼은 인공지능(AI)과 머신러닝(ML)을 사용하여 빠른 펩타이드 결합 약물 설계를 수행합니다. 결합된 회사는 데코이 테라퓨틱스라는 이름으로, 호흡기 바이러스 및 암에 대한 펩타이드 결합 치료제 개발에 집중할 것입니다.
데코이는 정부, 기업 및 빌&멜린다 게이츠 재단으로부터 700만 달러의 비희석 자금을 확보했습니다. 살라리우스의 경구용 소분자 단백질 분해제인 SP-3164가 데코이의 파이프라인에 통합될 것입니다. 새로운 법인은 데코이의 공동 창립자들이 이끌고, 두 회사의 경영진이 포함됩니다.
데코이는 12개월 이내에 범 코로나바이러스 항바이러스제에 대한 IND를 제출하는 것을 목표로 하고 있습니다. 이번 합병은 여러 가치 창출의 전환점을 만들어 주주 가치를 높일 것으로 기대됩니다. 살라리우스의 seclidemstat에 대한 지속적인 개발이 진행될 것이며, 전략적 대안이 평가될 것입니다.
Salarius Pharmaceuticals (NASDAQ: SLRX) et Decoy Therapeutics ont annoncé un accord de fusion définitif. La plateforme IMP3ACT™ de Decoy utilise l’IA et le ML pour la conception rapide de médicaments conjugés de peptides. La société combinée, qui sera nommée Decoy Therapeutics, se concentrera sur le développement de thérapies conjugées de peptides pour les virus respiratoires et le cancer.
Decoy a sécurisé 7 millions de dollars de financement non dilutif provenant de gouvernements fédéraux, d’entreprises et de la Fondation Bill & Melinda Gates. Le dégradateur de protéines à petites molécules orales de Salarius, SP-3164, sera intégré dans le portefeuille de Decoy. La nouvelle entité sera dirigée par les cofondateurs de Decoy et comprendra des cadres des deux entreprises.
Decoy vise à soumettre une IND pour un antiviral pan-coronavirus dans les 12 mois. On s’attend à ce que la fusion crée de multiples points d’inflexion créant de la valeur, améliorant ainsi la valeur pour les actionnaires. Le développement continu de seclidemstat de Salarius pour les cancers hématologiques se poursuivra, avec des alternatives stratégiques évaluées.
Salarius Pharmaceuticals (NASDAQ: SLRX) und Decoy Therapeutics haben eine endgültige Fusionsvereinbarung bekannt gegeben. Die IMP3ACT™ Plattform von Decoy nutzt KI und ML für die schnelle Entwicklung von Peptid-Konjugat-Medikamenten. Das fusionierte Unternehmen, das den Namen Decoy Therapeutics tragen wird, wird sich auf die Entwicklung von Peptid-Konjugat-Therapeutika für Atemwegsviren und Krebs konzentrieren.
Decoy hat 7 Millionen Dollar an nicht verwässernder Finanzierung von Bundesbehörden, Unternehmen und der Bill & Melinda Gates Foundation gesichert. Der orale kleine Molekül-Proteinderreater von Salarius, SP-3164, wird in Decoys Pipeline integriert. Die neue Organisation wird von den Mitbegründern von Decoy geleitet und umfasst Führungskräfte beider Unternehmen.
Decoy plant, innerhalb von 12 Monaten einen IND für ein pan-coronavirus Antivirenmittel einzureichen. Die Fusion wird voraussichtlich mehrere wertschaffende Wendepunkte schaffen, die den Wert für die Aktionäre erhöhen. Die laufende Entwicklung von Salarius’ seclidemstat für hämatologische Krebserkrankungen wird fortgesetzt, während strategische Alternativen geprüft werden.
Positive
- Merger with Decoy Therapeutics expected to accelerate development of peptide conjugate therapeutics.
- Decoy secured $7 million in non-dilutive funding.
- Integration of Salarius’ SP-3164 into Decoy’s pipeline.
- Filing of an IND for a pan-coronavirus antiviral expected within 12 months.
Negative
- No immediate financial metrics or revenue projections provided.
- Potential risks associated with merging and integrating the two companies.
- Uncertainty regarding the outcome of strategic alternatives for seclidemstat.
Insights
This merger represents a strategic pivot for Salarius Pharmaceuticals, transforming from a cancer-focused company into a broader therapeutic platform company through Decoy’s IMP3ACT™ technology. The deal structure appears to be a reverse merger, allowing Decoy to gain public listing status while maintaining operational control. The
The merger combines Salarius’ public listing and clinical-stage assets with Decoy’s novel AI-driven peptide platform, creating potential synergies in drug development. The decision to incorporate Salarius’ SP-3164 into a PROTAC format suggests technology integration opportunities. The retention of key management from both companies, particularly Decoy’s experienced leadership team, indicates a well-planned integration strategy.
For a micro-cap company with a market cap of
The IMP3ACT™ platform’s ability to rapidly design peptide conjugates using ML/AI tools positions the combined company advantageously in the fast-growing peptide therapeutics market. The platform’s versatility is demonstrated by its dual focus on infectious diseases (pan-coronavirus, flu, RSV) and oncology applications. The technology appears particularly relevant for addressing emerging viral threats, as evidenced by their work on H5N1 flu.
The development pipeline shows strategic diversification across multiple high-value therapeutic areas. The planned IND filing for the pan-coronavirus antiviral will be a critical technical validation point for the platform. The decision to continue Salarius’ seclidemstat trial at MD Anderson while exploring strategic alternatives represents a balanced approach to portfolio management.
The merger structure appears designed to maximize shareholder value while minimizing dilution through the use of convertible preferred stock. The
Multiple near-term catalysts, including the planned IND filing and potential clinical data from the ongoing MDACC trial, provide clear value-creation opportunities within the next 12 months. For investors, this represents a transformation from a single-asset oncology company to a diversified platform company with multiple shots on goal across different therapeutic areas.
Decoy’s proprietary IMP3ACT™ peptide conjugate drug design and manufacturing platform leverages machine learning (ML) and artificial intelligence (AI) tools
Decoy is leveraging non-dilutive funding and equivalents from federal governments, corporations and The Bill & Melinda Gates Foundation totaling approximately
Combined company expects to accelerate clinical development of novel peptide conjugate therapeutics for the treatment of respiratory viruses and cancer
HOUSTON and CAMBRIDGE, Mass., Jan. 13, 2025 (GLOBE NEWSWIRE) — Salarius Pharmaceuticals, Inc. (NASDAQ: SLRX), a clinical-stage biopharmaceutical company developing therapies for patients with cancer in need of new treatment options, and Decoy Therapeutics, Inc., a privately held preclinical biopharmaceutical company engineering the next generation of peptide conjugate therapeutics, announce the signing of a definitive agreement under which Decoy Therapeutics will merge with a wholly-owned subsidiary of Salarius Pharmaceuticals, subject to the closing conditions set forth in the definitive agreement. The newly formed company will be named Decoy Therapeutics.
This proposed transaction is expected to facilitate multiple value-creating inflection points with Decoy’s pipeline of peptide conjugate therapeutics engineered by its IMP3ACT platform, which allows for the rapid computational design and manufacturing of innovative peptide conjugate therapeutics including rapid response to novel viral pathogens such as avian H5N1 flu. Decoy’s product pipeline targets unmet needs in respiratory infectious diseases and gastroenterology (GI) oncology indications.
In addition, the combined company intends to incorporate Salarius’ oral small molecule protein degrader SP-3164 into a highly targeted peptide-based proteolysis targeting chimeras (PROTACS) drug candidate. The ongoing development of Salarius’ seclidemstat for hematologic cancers in an investigator-initiated Phase 1/2 clinical trial at MD Anderson Cancer Center (MDACC) will be supported while the company evaluates strategic alternatives for seclidemstat.
Executive Leadership and Management Commentary
The combined company will be led by Decoy’s Co-founders, Chief Executive Officer Frederick “Rick” Pierce and Chief Scientific Officer Barbara Hibner, by Decoy’s Chief Business Officer Peter Marschel, Chief Technology Officer Mike Lipp and acting Chief Medical Officer and Scientific Advisory Board Chair Shahin Gharakhanian, M.D., and by Salarius’ Chief Financial Officer Mark Rosenblum. The two companies have further agreed that upon closing of the merger and a post-closing shareholder vote approving the conversion of the preferred stock issued at closing, the newly merged company’s Board of Directors will be comprised of Rick Pierce and Barbara Hibner, and three independent Directors, two appointed by Decoy’s Board and one by Salarius’ Board.
Rick Pierce is a life sciences executive with more than 25 years of senior management experience across private and public companies. Previously he served as Vice President of Corporate Development and Investor Relations at Javelin Pharmaceuticals, a publicly traded company that developed Dyloject™ through EMEA approval, launch and NDA submission, at which time it was acquired by Hospira, Inc., now a subsidiary of Pfizer. Earlier in his career, Mr. Pierce spent 15 years in investment banking at bulge bracket Wall Street firms primarily focused on corporate finance, institutional sales and trading in healthcare, biotechnology and technology, ultra-high-net worth individuals and family offices.
Mr. Pierce commented, “Peptide conjugates have become one of the most important drug classes as measured by prescription rates and revenue growth. Our highly experienced team is excited to be able to unlock significant shareholder value from our IMP3ACT platform, which can rapidly design new peptide conjugate drugs by applying ML and AI tools. Having access to capital and the visibility afforded by a public listing are significant corporate milestones that further enable Decoy to advance our expanded preclinical and clinical candidates to address important unmet patient needs.”
“After undertaking a comprehensive strategic review process, we believe that the proposed transaction with Decoy Therapeutics offers the best opportunity to create significant near- and long-term value,” stated David Arthur, President, CEO and Director of Salarius Pharmaceuticals. “The compelling science supporting Decoy’s peptide conjugate technology and the company’s management team are truly impressive. Based on our diligence, we believe Decoy is poised to advance multiple drug candidates that address significant unmet needs in numerous therapeutic areas. The Board of Salarius and I would like to thank our stockholders for their support during this review process, and to reiterate the team’s commitment to enhancing shareholder value with this transaction and beyond.”
Upcoming Milestones
During the next 12 months, Decoy expects to advance its lead asset, a pan-coronavirus antiviral, to the filing of an Investigational New Drug (IND) application with the U.S. Food and Drug Administration (FDA), and to make progress with its other programs including a broad-acting antiviral against flu, COVID-19 and respiratory syncytial virus (RSV), and a peptide drug conjugate targeting GI cancers.
Also during this time data may be reported from the ongoing MDACC clinical trial in myelodysplastic syndrome (MDS) and chronic myelomonocytic leukemia (CMML) patients who previously failed or relapsed after hypomethylating agent therapy.
About the Proposed Transaction
Definitive agreements were executed with unanimous approvals by the Boards of Directors of Salarius Pharmaceuticals and Decoy Therapeutics. The closing consideration will consist primarily of nonvoting preferred stock of Salarius, and it is expected that following closing and a post-closing stockholder vote to approve the conversion of the preferred shares into common stock, Decoy investors would own approximately
Canaccord Genuity is serving as exclusive strategic advisor to Salarius, and Hogan Lovells US LLP and Honigman LLP are serving as legal counsel. Ladenburg Thalmann is serving as financial advisor to Decoy, and Nason, Yeager, Gerson, Harris & Fumero, P.A. is serving as legal counsel.
About Decoy Therapeutics, Inc.
Decoy Therapeutics is a preclinical-stage biotechnology company that is leveraging machine learning and artificial intelligence tools alongside high-speed synthesis techniques to rapidly design, engineer and manufacture peptide conjugate drug candidates that target serious unmet medical needs. The company’s initial pipeline is focused on respiratory viruses and GI cancers. Decoy has attracted financing from institutional investors as well as significant non-dilutive capital from the Bill & Melinda Gates Foundation, the Massachusetts Life Sciences Seed Fund, the Google AI startup program and the NVIDIA Inception program. The company has also received QuickFire Challenge award funding provided by BARDA through BLUE KNIGHT™, a collaboration between Johnson & Johnson Innovation – JLABS and the Biomedical Advanced Research and Development Authority within the Administration for Strategic Preparedness and Response. For more information, please visit www.DecoyTx.com.
About Salarius Pharmaceuticals, Inc.
Salarius Pharmaceuticals is a clinical-stage biopharmaceutical company with two drug candidates for patients with cancer in need of new treatment options. Salarius’ product portfolio includes seclidemstat, the company’s lead candidate, which is being studied in an investigator-initiated Phase 1/2 clinical study in hematologic cancers underway at MD Anderson Cancer Center as a potential treatment for MDS and CML in patients with limited treatment options. SP-3164, the company’s IND-stage second asset, is an oral small molecule protein degrader. Salarius previously received financial support for seclidemstat for the treatment of Ewing sarcoma from the National Pediatric Cancer Foundation and was a recipient of a Product Development Award from the Cancer Prevention and Research Institute of Texas (CPRIT). For more information, please visit www.salariuspharma.com.
Non-Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No public offer of securities in connection with the merger shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains forward-looking statements regarding Salarius, Decoy, the proposed merger and other matters, including without limitation, statements relating to the expected ownership percentages of the combined company and plans and expectations relating to the business, products including expected achievement of milestones for its lead asset and future prospects of Decoy and the combined company. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the management of Salarius, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and other similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the risk that the conditions to the Closing are not satisfied, including uncertainties as to the timing of the consummation of the proposed merger; the ability of each of Salarius and Decoy to consummate the merger; risks related to Salarius’ ability to estimate and manage its operating expenses and its expenses associated with the proposed merger pending the closing; risks that the combined company will not achieve the synergies expected from the proposed merger; risks that Salarius and the combined company will not obtain sufficient financing to execute on their business plans and risks related to Decoy’s products and development plans including unanticipated issues with any IND application process. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the SEC, including the risk factors contained in Salarius’ Current Report on Form 8-K filed on January 13, 2025 which attempt to advise interested parties of the risks and factors that may affect the merger, and the prospects, financial condition, results of operation and cash flows of each of Salarius, Decoy and the combined company. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.
CONTACTS:
Salarius Pharmaceuticals, Inc.
Alliance Advisors IR
Jody Cain
jcain@allianceadvisors.com
310-691-7100
Decoy Therapeutics, Inc.
Investors and Media:
Rick Pierce, CEO
Pierce@decoytx.com
617-447-8299
Business Development:
Peter Marschel, CBO
Peter@Decoytx.com
617-943-6305
FAQ
What does the SLRX merger with Decoy Therapeutics mean for shareholders?
The merger is expected to accelerate the development of peptide conjugate therapeutics and create multiple value-creating inflection points.
What is the IMP3ACT™ platform in the SLRX merger?
The IMP3ACT™ platform uses AI and ML for rapid peptide conjugate drug design and manufacturing.
How much funding has Decoy Therapeutics secured for the merger with SLRX?
Decoy has secured $7 million in non-dilutive funding from federal governments, corporations, and The Bill & Melinda Gates Foundation.
What are the upcoming milestones for the newly formed Decoy Therapeutics?
Decoy plans to file an IND for a pan-coronavirus antiviral within 12 months and make progress on other antiviral and gastrointestinal cancer programs.
What will happen to Salarius’ seclidemstat after the merger with Decoy?
Development of seclidemstat for hematologic cancers will continue while the company evaluates strategic alternatives.
