SNSS - Sunesis Pharma to merge with Viracta Therapeutics in all-stock deal

Sunesis Pharmaceuticals (SNSS) soars 48% in premarket, after announcing a reverse merger agreement with a privately-held Viracta Therapeutics. The new organization will do business under the Viracta moniker and intends to be listed on the Nasdaq under the ticker symbol “VIRX.” Combined company is expected to have ~$120M cash balance, with an expected cash runway into 2024.The pipeline will be led by Viracta’s lead program for Epstein-Barr virus ((EBV))-positive relapsed/refractory lymphomas, currently in a Phase 2 study evaluating the combination of nanatinostat and valganciclovir, and registration trial is expected to begin in 1H of 2021. The company also plans to initiate a Phase 1b/2 trial in EBV-positive solid tumors in 2021.Viracta stockholders will own ~86% and Sunesis stockholders will own the remaining of the combined entity.New business will be led by Viracta’s current management team, and board of Directors is expected to consist of seven members, including six from Viracta’s board and one from Sunesis’ board.

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Sunesis Pharma to merge with Viracta Therapeutics in all-stock deal