PrimeGen US to Go Public via $1.5 Billion Merger with DT Cloud Star
Stem Cell Biotech Secures Path to Public Markets in Major SPAC Deal
In a significant move for the regenerative medicine sector, PrimeGen US has entered into a definitive agreement to merge with special purpose acquisition company (SPAC) DT Cloud Star Acquisition Corp. The transaction implies an equity value of approximately $1.5 billion and is projected to close in the second half of 2026, subject to regulatory and shareholder approvals.
The merger is designed to provide PrimeGen US—a company with nearly two decades of stem cell research—with the capital required to advance its clinical pipeline. The funds are earmarked for progressing clinical studies, navigating regulatory pathways with the U.S. Food and Drug Administration (FDA), and preparing for potential commercialization of its lead therapy.
PrimeGen's flagship program involves triple-activated mesenchymal stem cells (MSCs) as a potential treatment for acute liver injury, including acute alcoholic hepatitis. The company recently completed a pre-IND meeting with the FDA in December 2025, a critical step before initiating formal clinical trials. However, as with all investigational therapies, the company cautions that FDA approval and successful trial outcomes are not guaranteed.
"This transaction is expected to significantly enhance our access to the capital and resources necessary to advance our stem cell and exosome programs," said Daniel Chiu, Co-CEO and Chairman of PrimeGen US. "Our scientific focus and innovation position us to expand our footprint in the dynamic field of regenerative medicine."
Upon completion, the combined entity is expected to operate under the PrimeGen US name and list on the Nasdaq under a new ticker symbol. The deal is contingent on several conditions, including shareholder approval from both companies, regulatory clearances such as compliance with antitrust laws, and meeting minimum cash requirements.
Market Context & Analyst Commentary
The merger arrives as the biotech sector shows renewed interest in novel cell therapies, despite a challenging funding environment for early-stage companies. SPAC mergers have become a viable, though sometimes volatile, route to public markets for life sciences firms seeking to bypass the traditional IPO process.
Dr. Evelyn Reed, Biotech Analyst at Horizon Insights: "This is a strategic move for PrimeGen. The $1.5 billion valuation reflects significant investor confidence in their platform science. Access to public market capital could accelerate their timeline, especially for the acute liver failure program, which addresses a high-unmet medical need."
Marcus Thorne, Portfolio Manager at LifeSci Ventures: "The long timeline—closing not until late 2026—is a double-edged sword. It gives them runway, but also exposes the deal to market volatility and regulatory shifts. Success hinges entirely on their upcoming clinical data."
Dr. Anya Petrova, Research Fellow, Center for Bioethics: "While the science is promising, we must temper enthusiasm. The stem cell field is littered with overpromises. A SPAC deal of this size puts immense pressure on a pre-clinical company to deliver near-perfect results. Patients and investors should be cautious."
Gary R. (Commenter on InvestingForum): "Another SPAC pumping a preclinical biotech with a fancy valuation. This is pure speculation until they show Phase I data in humans. The 2026 closing date just kicks the can down the road. Retail investors beware."
This report is based on information originally published by Pharmaceutical Technology.
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