Aeglea BioTherapeutics, which has been exploring strategic alternatives given its poor stock performance, is merging with biotech firm Spyre Therapeutics in a deal that coincides with a private placement.

The merger is a stock-for-stock deal with Austin, TX-based Aeglea buying Spyre’s existing equity interest in exchange for roughly 13 million common Aeglea shares and 365,000 shares of series A preferred stock.

The private investment in public equity, or PIPE will give the combined company $210 million in funding before expenses. At the close, the company is expected to have about $220 million in cash and cash equivalents to fund its operations into 2026.

Waltham, MA-based Spyre is the second spinout of Paragon Therapeutics. The firm develops antibody drugs for inflammatory bowel disease, or IBD. The acquisition adds Spyre’s two parallel lead programs featuring the antibodies SPY001 and SPY002 targeting a4b7 and TL1A, respectively, to Aeglea’s portfolio.

“The company is making rapid progress advancing their two parallel lead programs into the clinic, and we believe these programs will enable us to capture a sizable share of the growing IBD market,” said Jonathan D. Alspaugh, President and CFO, Aeglea.

Aeglea stock was trading at just $0.12 per share ahead of the announcement. The price has since jumped over 400% to $0.55, although this remains below Nasdaq’s $1 threshold to remain listed.