NextCure  Inc

RTW Biotech Opportunities Ltd. announced that its private portfolio company Avere Therapeutics agreed to merge with NextCure Inc. in an all-stock transaction. The combined company will operate as Avere Therapeutics and trade on Nasdaq under the ticker AVRX, with the deal expected to close by year-end. Avere is also raising a total of $820 million through two private placements, including a previously announced $320 million placement and a new $500 million placement. RTW Bio will participate in both offerings, with its total investment expected to be $5.9 million. The proceeds are intended to fund Avere's lead asset, AVR-001, through a Phase 2b readout in psoriasis, the initiation of a Phase 3 psoriasis trial, and a Phase 2b trial in ulcerative colitis. This marks RTW Bio's fourth reverse merger of 2026, following Yarrow Bioscience, Obsidian Therapeutics, and Serapha Bio. Avere represented 0.3% of RTW Bio's NAV as of June 30, following the first $320 million private placement.

NextCure shares surged more than 200% on Tuesday after the company announced a definitive all-stock merger agreement with privately held Avere Therapeutics. The combined company will operate as Avere Therapeutics and trade on Nasdaq under the ticker AVRX, with the deal expected to close in the second half of 2026. Avere's lead program, AVR-001, is an oral IL-23 receptor antagonist with Phase 1b psoriasis data, and a Phase 2b study is set to begin in early 2027. Other notable biotech gainers included Basel Medical Group, which rose over 26% after regaining Nasdaq compliance, and Outlook Therapeutics, up more than 11% ahead of a July 29 FDA decision on its wet AMD treatment ONS-5010.

NextCure and privately-held Avere Therapeutics have entered into a definitive all-stock merger agreement to advance Avere's oral IL-23 receptor antagonist, AVR-001. The combined company will operate as Avere Therapeutics and trade on Nasdaq under the ticker AVRX upon closing, expected in the second half of 2026. A concurrent 320 million dollar private placement led by Fairmount and Hansoh Pharmaceutical Group, with participation from Venrock Healthcare Capital Partners, General Atlantic, Wellington Management, and RTW Investments, includes 251 million dollars in convertible notes to be exchanged for common stock at closing. The capital is expected to fund operations through a Phase 2b readout in psoriasis, initiation of a Phase 3 trial in psoriasis, and a Phase 2b trial in ulcerative colitis. The leadership team, including CEO Andrew Cheng, previously guided Akero Therapeutics from pre-IPO through its 5.2 billion dollar sale to Novo Nordisk in 2025. NextCure's stock surged over 280 percent in pre-market trading following the announcement.

Zacks Investment Research identifies Autolus Therapeutics, NextCure, and Recursion Pharmaceuticals as three cancer-focused stocks worth evaluating amid accelerating oncology innovation. Autolus, a commercial-stage company, markets the CAR-T therapy Aucatzyl for relapsed or refractory B-cell acute lymphoblastic leukemia and has guided 2026 net product revenues of $120-$135 million. NextCure is advancing two lead antibody-drug conjugate programs, including SIM0505, which showed a 55% objective response rate in heavily pretreated gynecologic cancers in early data. Recursion Pharmaceuticals, a clinical-stage TechBio company, is developing a pipeline of precision oncology candidates, with its most advanced asset REC-1245 showing encouraging early safety and pharmacokinetic data. All three stocks carry a Zacks Rank #2 (Buy).