Q32 Bio Inc., a clinical stage biotechnology company developing biologic therapeutics to restore immune homeostasis, and Homology Medicines, Inc. (Nasdaq: FIXX), have announced they have entered into a definitive merger agreement to combine the companies in an all-stock transaction. The combined company will focus on advancing Q32 Bio’s wholly owned clinical development candidates for the treatment of autoimmune and inflammatory diseases. Upon completion of the merger, the combined company will operate as Q32 Bio, headquartered in Waltham, Massachusetts, and is expected to trade under the Nasdaq ticker symbol “QTTB”.

In support of the merger agreement, Q32 Bio has entered into an agreement for a US$42 million private placement with participation from existing and new investors including OrbiMed, Atlas Venture, Abingworth, Bristol Myers Squibb, Acorn Bioventures, Osage University Partners (OUP), CU Healthcare Innovation Fund, Sanofi Ventures, Agent Capital, and other undisclosed investors.

Latham & Watkins is advising Homology in the transaction with a corporate deal team led by partners Leah Sauter and Peter Handrinos, with associates Elizabeth Slawsby and Junhan Zhang. Advice was also provided on tax matters by partner Katharine Moir, with associates Rasha Suleiman and Derek Gumm; on benefits matters by partner Matt Conway, with associates Ashlie Lawton, Dane Rebkowec, and Bryce Williamson; on litigation matters by partner Colleen Smith; on intellectual property matters by partner Steven Chinowsky, with associates Robert Yeh and Kristina Funahashi; on capital markets matters by partner Elisabeth Martin, with associates Nicholas Reist and Ashley Dunn; on public company representation matters by partner Jenna Cooper and counsel Nicole McNeil, with associate Hanna Downing; and on antitrust matters by counsel Patrick English.