Corvex-Casdin-backed SPAC Is Close to Completing an Agreement to Merge With Drug Startup EQRx

By Nicholas Say Nicholas Say has been verified by Muck Rack's editorial team
Published on August 7, 2021

The third SPAC backed by Eli Casdin’s Casdin Capital LLC and Keith Meister’s Corvex Management LP, CM Life Sciences III, is set to merge with the young pharmaceutical startup EQRx Inc.

In a deal that could be worth up to $1.8 billion in cash, including a $1.2 billion investment from a subsidiary of SoftBank Group Corp. and Fidelity Investments, among others EQRx Inc. looks like it could be in for a big rush of cash. This extra capital is a private investment in public equity or PIPE.

EQRx was established in 2019 in Cambridge, Mass with Casdin Capital’s investment in the early stages. The startup’s vision is to try to slash drug prices.

The company thinks drug prices could be reduced by two-thirds or more thanks to collaborating with insurance companies, taking advantage of advances in science, and making the development process more efficient.

The young pharmaceutical company has developed medicines that compy the biological function of existing drugs but have molecular structures different enough not to infringe on patents that brand-name drug manufacturers own.

In addition to currently focusing on medicines that treat diseases such as lung cancer, rheumatoid arthritis, and asthma, EQRx also has more than 10 kinds of drugs in various stages of development, which need a lot of money to move forward.

According to Melanie Nallicheri, President and Chief Operating Officer at EQRx, the money collected will help to build up its portfolio.

“With the proceeds, we’ll be able to further expand our catalog of medicines. This was the best way to accelerate growth,” the CEO mentioned in relation to the decision to merge with the SPAC.

The deal comes after EQRx’s fundraising rounds with hundreds of millions of dollars raised from early investors Andreessen Horowitz, ARCH Venture Partners, and GV, formerly Google Ventures.

This is the third SPAC merger that Casdin and Meister have arranged within this year. In February, the first SPAC was agreed to merge with Sema4, a genomic-and clinical-data company.

By Nicholas Say Nicholas Say has been verified by Muck Rack's editorial team

Nicholas Ross Say is a news desk editor at Grit Daily. An award-winning journalist, he covers the daily startup beat. He grew up in Ann Arbor, Michigan and has lived in South America and South East Asia. At present, Nicholas lives in Southern Vietnam where the Sun shines, and the noodles flow like wine. He's written for Blockonomi and Coin Journal, among others.

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