Rallybio Drops 5.61% Despite Asset Sale Boost

On July 10, 2025, Rallybio's stock experienced a significant drop of 5.61% in pre-market trading, marking a notable decline in its share price.

Rallybio's recent asset sale to Recursion Pharmaceuticals has been a significant event, with the latter acquiring full rights to the REV102 program. This deal involves an upfront payment of $7.5 million in equity, with an additional $12.5 million in contingent equity payable upon the start of further preclinical studies. Recursion Pharmaceuticals will also make a $5 million milestone payment to Rallybio upon the initiation of dosing in an upcoming early-stage clinical study. This strategic move has strengthened Rallybio's balance sheet and extended its cash runway into mid-2027.

The acquisition of full rights to the HPP program by Recursion Pharmaceuticals is expected to accelerate the development of REV102, a potential first oral, disease-modifying therapy for hypophosphatasia (HPP). This deal has had a positive impact on Rallybio's stock, which soared 50.2% on Tuesday in response to the news. The influx of funds from Recursion Pharmaceuticals has provided Rallybio with the financial stability needed to continue its operations and explore further opportunities in the biotech sector.