Slate Medicines plans to go public, raises $245M in private financing
Raleigh-based Slate Medicines, a new company developing therapeutics to prevent migraine headaches, is planning to become a publicly traded company through a reverse merger with another biotech company that is already listed on the Nasdaq stock exchange.
Slate announced it would combine with Fulcrum Therapeutics of Cambridge, Mass., in an all-stock transaction. Upon completion of the merger, the combined company plans to operate under the name Slate Medicines and is expected to trade on the Nasdaq under the ticker symbol “SLTE.”
In support of the merger, Slate has secured commitments for an oversubscribed concurrent private placement of $245 million from a syndicate of healthcare investors led by Frazier Life Sciences and including participation by Forbion, RA Capital Management, Deep Track Capital, Foresite Capital, OrbiMed, RTW Investments and Mingxin Capital.
“Migraine remains one of the most prevalent and disabling neurological diseases, yet millions of patients continue to be underserved by existing therapies,” said Gregory Oakes, chief executive officer of Slate Medicines. “This merger and the related financing are expected to provide the resources to advance SLTE-1009, along with the rest of our pipeline, through potentially meaningful clinical milestones.”
SLTE-1009, Slate’s lead product candidate, is a clinical stage monoclonal antibody intended for quarterly, at-home, subcutaneous dosing for the prevention of migraine and other headache disorders.
The combined company’s cash balance at closing is expected to fund Slate’s operations into 2029, support the advancement of SLTE-1009 through a Phase 1 healthy volunteer study and a Phase 2 dose-range finding study in migraine patients, and advance Slate’s pipeline of other headache medicines, the company reported.
Targeted therapy
SLTE-1009 is designed to bind to two neuropeptides that play key roles in the development of migraine: pituitary adenylate cyclase-activating peptide (PACAP) and vasoactive intestinal peptide (VIP). The monoclonal antibody “offers the potential for enhanced efficacy relative to PACAP-only targeting therapeutics through more complete neutralization of the PACAP/VIP pathway,” Slate said.
SLTE-1009 has received clearance to enter Phase 1 clinical trials in Australia, and initial pharmacokinetic and safety data is anticipated mid-year 2027.
Slate is also developing SLTE-2100, a bispecific antibody targeting PACAP/VIP and calcitonin gene-related peptide (CGRP), currently in lead optimization. The program is expected to enter clinical trials in the second half of 2027 and is funded through a Phase 2a study in migraine patients. The company is also developing an additional undisclosed program in the migraine space.
Slate is led by a team with expertise in migraine biology, drug development and commercialization. In addition to Oakes, the CEO, the team includes Neil Buckley, president and chief operating officer; Roger Cady, M.D., chief medical officer, and John Umstead, CPA, chief financial officer.
The company has also recruited a team of nationally recognized neurologists and headache researchers to its scientific and clinical advisory boards who will help shape Slate’s scientific and clinical strategy.
Slate launched in February with $130 million in series A venture capital funding. Its drug pipeline was in-licensed from DartsBio Pharmaceuticals of Zhongsha, China.
Merger terms
A reverse merger is often executed by a private company seeking access to capital markets and the liquidity gained by having its shares listed on a stock exchange. It is a faster and cheaper way of “going public” than an initial public offering (IPO).
Under the terms of the Slate/Fulcrum merger agreement, Fulcrum stockholders are expected to own 5% of the combined company, and the pre-merger Slate stockholders 95%. Fulcrum is expected to contribute about $20.3 million in net cash to the combined entity and pay a cash dividend of an estimated $270 million to pre-merger Fulcrum stockholders.
The merger has received unanimous support by the board of directors of both companies and is expected to close in the fourth quarter of 2026, subject to customary closing conditions.
Fulcrum is a clinical-stage biopharmaceutical company focused on developing small molecules to improve the lives of patients with rare hematological disorders.
In June Fulcrum decided to discontinue developing its lead drug candidate, pociredir, a therapy for the treatment of sickle cell disease, amid safety concerns by the Food and Drug Administration. Fulcrum then began exploring exit strategies including a merger, acquisition, business combination or other strategic transaction in the best interest of its shareholders.
“Following our evaluation of strategic alternatives, we are pleased to announce this transaction with Slate, which we believe represents the best path forward for our stockholders and a compelling opportunity to participate in the development of a portfolio of next-generation migraine therapeutics,” said Alex C. Sapir, Fulcrum’s president and chief executive officer.
The combined company will be led by Oakes and his current executive team at Slate. Slate’s board of directors will serve as the board for the combined company and is expected to include Peter Kolchinsky, managing partner, RA Capital Management; Tim Lohoff, principal, Forbion; Michael Rome, managing director, Foresite Capital; and Mark Hahn, former CFO of Verona Pharma (acquired by Merck).
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