Shares of Werewolf Therapeutics, Inc. more than doubled in premarket trading Friday after the biopharmaceutical company said it would sell the assets of its Inducer and Indukine platforms for $33 million and execute an all-stock reverse merger with privately held Ambros Therapeutics.

Werewolf shares, which closed Thursday at about 43 cents, were recently changing hands at 98 cents in premarket activity.

Werewolf said the merger will create a late-stage biotechnology company focused on advancing Ambros' neridronate treatment candidate for complex regional pain syndrome Type 1, a chronic pain condition formerly known as reflex sympathetic dystrophy.

Werewolf said the companies have secured commitments for a $150 million private placement with a syndicate of healthcare-dedicated investors co-led by RA Capital Management and Janus Henderson Investors.

The Ambrose deal, which gives Werewolf am implied value of $47.5 million, comes as the Watertown, Mass., company is selling its Inducer and Indukine platforms to a unit of Germany's Merck KGaA for an initial $28 million, plus $5 million upon completion of a technology transfer.

Werewolf, which is retaining its clinical development programs for WTX-124 and WTX-330, said its shareholders will own about 6.8% of the combined company, while Ambros shareholders will own roughly 71.7% and investors participating in the private placement will own around 21.5%.

A reverse merger allows a private company to go public by merging with a public one at a lower cost than is involved in traditional initial public offerings.

Werewolf said the combined company, which will be based in San Diego, will have a cash runway into the first half of 2029.

The combined company will operate as Ambros Therapeutics and trade under the symbol AMBX upon completion of the deal, slated to close by the first quarter of 2027.