Investors funnel $275 million into Paragon Therapeutics-spinout

Investors have funneled $275 million into a revamped biotech developing new psoriasis and psoriatic arthritis treatments that could be given just once or twice a year.

The new Oruka Therapeutics launched Wednesday through a reverse merger with ARCA biopharma, a Colorado biotech that has undergone several iterations over the last 30 years. With the merger, ARCA’s plans are being cast aside in favor of Oruka’s antibody medicines, which came from spinout-generator Paragon Therapeutics. Over the last two years, Paragon has spun out Apogee Therapeutics and Spyre Therapeutics.

Oruka will trade under the Nasdaq ticker “ORKA.”