PrimeGen US, a California-based biotechnology company specializing in stem cell therapies, has announced plans to go public through a merger with DT Cloud Star Acquisition Corporation, a special purpose acquisition company (SPAC). The agreement values PrimeGen at approximately $1.5 billion in equity, as detailed in a regulatory filing dated February 4.
DT Cloud Star raised $69 million when it went public in July 2024. The merger is expected to be completed in the second half of this year, pending approval from shareholders and regulators.
The funds from the SPAC transaction will support PrimeGen's development of its triple-activated mesenchymal stem cell pipeline. This technology focuses on using cell-based therapies for acute liver injury and related complications. According to preclinical animal studies referenced in regulatory documents, the platform has shown promise but has not yet advanced to human clinical trials.
PrimeGen recently held a pre-investigational new drug (IND) application meeting with the U.S. Food and Drug Administration (FDA) last December concerning its program targeting acute alcohol hepatitis. However, the company noted that “there can be no assurance that the FDA will allow an IND to proceed or that any clinical trials will be successful.” The company further stated that evidence from preclinical studies “may not be indicative of clinical outcomes in humans.”
DT Cloud Star CEO Sam Zheng Sun expressed optimism about the deal, stating: “PrimeGen is uniquely positioned to deliver much-needed regenerative medicine to treat challenging diseases, such as acute liver failure.”
SPACs have become an alternative route for biotech companies—especially those without clinical-stage assets—to access public markets. With traditional initial public offerings slowing down last year, several biotechs turned to SPACs as an entry point onto Nasdaq. In 2025 alone, there were at least five biotech SPAC mergers, including BridgeBio Oncology Therapeutics' combination with Helix Acquisition Corp. II.
