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Mentari plans a $421M public debut through reverse merger & Oorja Bio launches with $30M to tackle idiopathic pulmonary fibrosis

AuthorAuthor

Joachim Eeckhout & Eduardo Longoria
May 21, 2026

Good morning. Remember Parabilis, the company we featured on Tuesday for its $2.3bn deal with Regeneron? It looks like the momentum is continuing as the company has now announced plans to go public through an upcoming IPO. Parabilis has not yet disclosed the number of shares it plans to offer, but the proceeds are expected to help fund the launch of a phase 3 study of zolucatetide, its Wnt/β-catenin pathway inhibitor for desmoid tumors, a rare, noncancerous growth that forms in connective tissue. We’ll keep you posted.

— Joachim E.

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SNAPSHOT

Migraine startup Mentari plans a $421M public debut through reverse merger with struggling biotech InMed

Two become one. (or one becomes two?)

Mentari Therapeutics will go public by merging with InMed Pharmaceuticals, creating a Nasdaq-listed company focused on migraine prevention drugs targeting the PACAP protein pathway. The deal includes a $290 million private financing round led by Fairmount.

Why it matters: Migraines remain poorly controlled for many patients, even with newer CGRP-targeting drugs. Mentari is betting that blocking PACAP, a different nervous system protein tied to pain signaling and blood vessel dilation, could help patients who don’t respond adequately to current therapies.

Backstory: Mentari emerged from Paragon Therapeutics, a biotech incubator known for launching multiple venture-backed drug startups. The company joins a growing field of PACAP-focused developers, including Lundbeck and Slate Medicines. Meanwhile, InMed has struggled for years. Originally focused on cannabinoid-based therapies, its stock fell sharply after 2021 and traded as a penny stock for much of 2026.

Big picture: The deal highlights how reverse mergers remain a viable route to public markets for biotech startups despite a difficult IPO environment. It also underscores investor appetite for next-generation migraine therapies, particularly those aimed at patients underserved by existing CGRP drugs.

Zoom in: Mentari’s two lead candidates are MT-001, an antibody targeting PACAP alone, with Phase 2 proof-of-concept data expected in 2028 and MT-002, a bispecific antibody targeting both PACAP and CGRP, with Phase 1 data expected in 2027. The financing round drew major biotech investors, including Blackstone Multi-Asset Investing, Wellington Management, Andreessen Horowitz and Perceptive Advisors. Under the deal terms, current InMed shareholders will own about 1.5% of the merged company.

What’s next: The merger is expected to close in the second half of 2026. The combined company will operate as Mentari and trade on Nasdaq under a new ticker symbol.

SNIPPETS

What’s happening in biotech today?

🫁 Fibrosis fix: Oorja Bio launched in Houston with $30 million in funding from Westlake BioPartners and a lead candidate, ORJ-001, aimed at treating idiopathic pulmonary fibrosis (IPF), a lung-scarring disease with no known cause. ORJ-001, formerly NP-201, was discovered by South Korean biotech NIBEC and works by activating β1 integrin, a receptor involved in maintaining lung structure and reducing inflammation. Oorja plans to begin a phase 2 trial later this year and hopes the therapy can repair and reverse fibrosis. The company, founded by biotech veterans from Tmunity Therapeutics, Acceleron Pharma, Merck, Amgen, and Biogen, intends to build a broader pipeline targeting fibrotic and cardiopulmonary diseases, entering a competitive IPF market alongside companies such as Avalyn Pharma and PureTech’s Celea Therapeutics.

🔥 Phosphate push: BioMarin Pharmaceutical’s experimental rare disease therapy BMN 401 failed to meet one of two co-primary goals in a Phase 3 trial for ENPP1 deficiency, raising concerns about its approval prospects. While the enzyme replacement therapy successfully increased levels of plasma inorganic pyrophosphate (PPi), a molecule lacking in patients with the genetic disorder, it did not improve skeletal health outcomes, and the company reported no positive trends in secondary endpoints. BMN 401 came from BioMarin’s $270 million acquisition of Inozyme and was expected to help diversify the company’s portfolio as it restructures operations and seeks new revenue sources amid growing competition and setbacks in other programs.

🚚 DNA delivery: Eli Lilly is acquiring California-based Engage Biologics in a deal worth up to $202 million, continuing the pharma giant’s recent streak of acquisitions. Engage develops preclinical non-viral DNA delivery systems designed to address common challenges such as potency, tolerability and redosability using its Tethosome platform, which combines engineered DNA payloads, lipid nanoparticles and mRNA-encoded technology to improve localization and gene expression. Backed by investors including Y Combinator, the Gates Foundation and the Cystic Fibrosis Foundation, Engage will now integrate its platform with Lilly’s genetic medicine capabilities. The acquisition follows several major Lilly deals this year, including purchases of Ajax Therapeutics and Kelonia Therapeutics, reflecting the company’s strategy of reinvesting its GLP-1 drug profits into expanding its innovation pipeline.

🔄 FcRn pivot: Immunovant has officially discontinued development of its first-generation FcRn inhibitor batoclimab after the drug failed two phase 3 trials in thyroid eye disease (TED). The studies missed their primary endpoint of reducing eye bulging, although the company noted that higher-dose treatment suggested deeper IgG suppression may offer greater benefit. Immunovant said insights gained from the batoclimab program will help guide development of its newer FcRn inhibitor, IMVT-1402, which is being tested in lupus, Graves’ disease and rheumatoid arthritis. Early rheumatoid arthritis data showing strong symptom improvement boosted investor confidence, sending shares up 20% in premarket trading.

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