Key Highlights

  • Skye Bioscience shares closed down 14% at $0.36.
  • The company announced a Merger with Redx Pharma to create Fibrx Therapeutics, a Nasdaq-listed fibrosis company led by Redx.
  • The combined firm will focus on RXC008, a Fast Track GI-restricted pan-ROCK inhibitor for fibrostenotic Crohn's disease.
  • The merger is backed by $125 million in funding to support operations into 2029 and through Phase 2 data expected in the second half of 2028.

Skye Bioscience, Inc. (NASDAQ: SKYE) shares closed down 14% at $0.36 after the company announced its merger with Redx Pharma to create Fibrx Therapeutics, a Nasdaq-listed fibrosis company led by Redx.

What Happened

The combined firm will focus on RXC008, a Fast Track GI-restricted pan-ROCK inhibitor for fibrostenotic Crohn's disease, backed by $125 million in funding to support operations into 2029 and through Phase 2 data expected in the second half of 2028.

Market Reaction

Shares fell despite the merger announcement, a decline that may reflect investor concern over dilution or the structure of the combined entity under Redx leadership, even as the deal secures substantial funding and a defined lead program.

Outlook

Phase 2 data for RXC008 in fibrostenotic Crohn's disease, expected in the second half of 2028, represents the next major disclosed milestone for the combined Fibrx Therapeutics entity.