HDL Therapeutics, a commercial-stage biotech company, is set to go public through a merger with Swiftmerge Acquisition, a special purpose acquisition company (SPAC), in a deal that values the combined entity at around $480m.

Based in the US, HDL Therapeutics is focused on developing treatments for challenging cardiovascular and neurovascular diseases by using its proprietary technology platform.

The company’s objective is to take a leading position in the treatment of high-risk plaques in the coronary arteries of heart disease patients. According to the biotech innovator, plaques are susceptible to rupture, which leaves patients at high risk for serious cardiac events.

HDL Therapeutics has approval from the US Food and Drug Administration (FDA) for Plasma Delipidation System (PDS-2 System) as a cardiovascular therapy.

The PDS-2 System is indicated to reduce coronary atheroma in patients having homozygous familial hypercholesterolemia (HoFH).

HDL Therapeutics’ patented technology platform is designed to considerably regress the high-risk plaques in adult patients with HoFH with an aim to address a crucial treatment gap in the fight against coronary atherosclerosis.

PDS-2 System is a therapeutic device which utilises the plasma of patients to use the body’s own biology for treating coronary atherosclerosis. The device’s approach can be used alongside other lipid-lowering therapies, said the company.

Swiftmerge board member Leonard Makowka said: “The cardiovascular disease treatment business is a massive industry, estimated to be worth over $300 billion. It encompasses pharmaceuticals, medical devices, diagnostic tests, and healthcare services.

“A treatment specifically targeting high-risk plaques can potentially disrupt this industry by challenging the current standard of care in preventing heart attacks.”

HDL Therapeutics expects the funds generated from the merger, coupled with the opportunity for public capital market access as a publicly traded entity, to provide it the means to bring the HoFH treatment to the market.

Furthermore, the company aims to broaden its therapeutic platform’s scope to address atherosclerotic plaques in various other medical conditions, with the objective of treating significant patient groups through a biologically formulated approach.

HDL Therapeutics chairman and CEO Michael Matin said: “We are thrilled to partner with Swiftmerge and hope to bring our groundbreaking treatment to appropriate patients around the world.

“Our treatment has the potential to benefit countless lives with the hope of one day eradicating coronary atherosclerosis as we know it.”

The combined entity is anticipated to get gross proceeds of around $104m. This includes $24m of cash held in the NASDAQ-listed Swiftmerge’s trust account and about $80m through a proposed private investment in public equity (PIPE) financing.

Under the terms of the deal, the holders of the outstanding preferred stock and common stock of HDL Therapeutics will get a mix of cash and equity in Swiftmerge with a total value of $400m.

The deal, which is expected to close in Q4 2023, is subject to approvals by the shareholders of Swiftmerge, stockholders of HDL Therapeutics, and other conditions.

To operate as HDL Therapeutics, the combined entity is anticipated to trade on the NASDAQ.