- Gyre Therapeutics subsequently said that it has entered into an agreement to acquire Cullgen in an all-stock transaction valued at about $300 million.
- Under the terms of the merger deal, Cullgen will become a wholly owned subsidiary of Gyre.
- Meanwhile, Pulmatrix said that it continues to pursue alternative merger opportunities.
Shares of Pulmatrix, Inc. (PULM), slumped 36% on Monday after the company said that its merger agreement with privately-held pharmaceutical company Cullgen Inc has been terminated.
The company said that Cullgen notified it of the deal termination on Feb. 28. The two companies had entered a merger deal in November 2024 and modified it in December 2025 to allow each party to explore alternate transactions. The company added that it did not receive necessary approval from China Security Regulatory Commission for the deal at the time of Cullgen’s agreement termination.
Gyre Therapeutics, Inc. (GYRE) subsequently said that it has entered into an agreement to acquire Cullgen in an all-stock transaction valued at about $300 million.
Gyre-Cullgen Deal
Cullgen is focused on the discovery and development of targeted protein degrader (TPD) and degrader antibody conjugate (DAC) therapies.
Under the terms of the merger deal, Cullgen will become a wholly owned subsidiary of Gyre.The transaction is expected to close early in the second quarter of 2026, subject to customary closing conditions, including necessary regulatory approvals in the U.S.
Following the closure of the acquisition, the new combined entity will be a fully integrated biopharmaceutical company with U.S.- and China-based capabilities spanning from discovery to manufacturing and commercialization and covering multiple therapeutic areas including inflammatory diseases, cancers, and pain, the company said.
Shares of GYRE rallied 8% at the time of writing.
Path Ahead For Pulmatrix
Meanwhile, Pulmatrix said that it continues to pursue alternative merger opportunities.
"Due to the significant delays at the Chinese Regulatory Authority (CSRC) in 2025, we initiated a process earlier this year to identify an alternative reverse merger opportunity for the Company, and we are encouraged by both the interest we've had to date as well as the recent increase in transaction activity within our industry," the company’s interim CEO Peter Ludlum said.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around GYRE rose from ‘Neutral’ to ‘Bullish’ territory over the past 24 hours, while message volume remained at ‘Normal’ levels.
Meanwhile, sentiment around PULM stayed ‘bullish,’ accompanied by ‘high’ message volume.
Shares of GYRE lost 22% over the past 12 months. PULM stock dipped 75% in the meantime.
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