Processa Pharmaceuticals acquires Vidya Therapeutics, lines up $200 million private placement

Processa Pharmaceuticals announced on July 29, 2026 that it had acquired Vidya Therapeutics, a clinical-stage company developing VT-7208, described as a Bruton's tyrosine kinase (BTK) inhibitor therapy for immune-mediated diseases with an initial focus on potentially best-in-class BTK inhibition in food allergy, chronic spontaneous urticaria and relapsing multiple sclerosis.¹

The transaction closed on July 28, 2026 through a two-step merger structure. Merger Sub I first merged with and into Vidya, with Vidya surviving as a wholly owned subsidiary of Processa; immediately afterward, Vidya merged with and into Merger Sub II, with Merger Sub II surviving and remaining a wholly owned subsidiary of the company.¹ The merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.¹

Under the merger terms, Processa issued Vidya stockholders 558,398 shares of common stock and 142,744.100 shares of Series A Non-Voting Convertible Preferred Stock, each convertible into 1,000 shares of common stock subject to stockholder approval.¹

Alongside the merger, Processa signed a Securities Purchase Agreement on July 28, 2026 to sell 163,774.679 shares of Series A Preferred Stock for an aggregate cash purchase price of approximately $200.0 million¹, expected to close July 30, 2026. The company intends to use the proceeds to fund operations into the second half of 2029 and through key clinical milestones, including top-line Phase 2 proof-of-concept data in food allergy, chronic spontaneous urticaria and relapsing multiple sclerosis.¹

Separately, on July 23, 2026, Processa terminated its 2020 license agreement with Elion Oncology covering PCS6422, returning the program to Elion as part of a litigation settlement.¹