10:02 AM EDT, 04/11/2024 (MT Newswires) -- Eliem Therapeutics ( ELYM ) and Tenet Medicines said Thursday they have signed an agreement under which Eliem will buy the development-stage private biotech company.

The combined company will focus on the development of TNT119, an antibody to potentially treat autoimmune diseases like systemic lupus erythematosus, immune thrombocytopenia and membranous nephropathy, the companies said.

To back the deal, Eliem is launching a $120 million private placement of shares with a group of new and existing investors.

The cash and cash equivalents of the merged company are expected to be about $210 million after the acquisition and private placement close. Eliem expects the amount to be enough to fund operations into 2027 and to potentially reach clinical and development milestones for TNT119.

The acquisition and private placement are expected to close in mid-2024.

Eliem shares were rising nearly 58% in recent trading.

Price: 4.21, Change: +1.54, Percent Change: +57.68