RA Capital Management has raised $75 million through a special purpose acquisition company, Research Alliance III, according to BioPharma Dive. The SPAC priced 7.5 million units at $10 each, with units consisting of one share of common stock and one right to receive a fractional share upon a business combination.
The IPO comes months after Cormorant Asset Management's $150 million blank-check offering. Research Alliance III plans to target a merger with a biotech company operating in China, reflecting ongoing interest in cross-border life sciences deals despite geopolitical tensions.
The SPAC structure allows RA Capital to raise funds from public investors while retaining flexibility in deal timing. Proceeds will be held in a trust until a qualifying acquisition is identified and approved by shareholders.
RA Capital, a Boston-based investment firm, has a history of backing both private and public biotech companies. The new vehicle extends its strategy of using SPACs to access capital for transformative biotech transactions.
However, the broader SPAC market has cooled significantly since 2021, with many blank-check companies struggling to find viable merger targets. Some investors remain skeptical about whether this vehicle will achieve a premium return compared to traditional biotech investing.