Another Paragon spinout goes public through reverse merger
Alaunos Therapeutics acquired Velaris Therapeutics, Paragon Labs' ninth spinout, in a reverse merger that takes the cardiopulmonary disease drug developer public. Fairmount Funds, which founded Paragon in 2021, led a concurrent private placement of about $350 million, with investors including Venrock, Wellington Management and T. Rowe Price accounts, funding operations into 2029. Four of the combined company's five board directors will come from or be picked by Fairmount, and the business will advance Velaris' programs plus an obesity and metabolic disorder drug from Alaunos.
Why it matters: Reverse mergers have surged to more than two dozen announced this year, matching IPO counts, and Velaris extends the Paragon-Fairmount model.