Ember Therapeutics, a Boston-based biotech discovering and developing novel obesity and diabetic related therapies, will merge with Mariel Therapeutics, a privately held, New York-based biotech developing targeted therapies for osteoarthritis and kidney fibrosis using Bone Morphogenetic Protein (BMP)-7.

The combined entity, to be named Ember Therapeutics, is expected to create a leader in innovative drug discovery and development in osteoarthritis, kidney fibrosis and diabetic related diseases including obesity. The combined company's clinical pipeline will include four drugs in development—one of which has completed phase II clinical trials in osteoarthritis and three of which are close to entering phase I.

Financial details of the transaction have not been disclosed.

"This transaction further enhances the clinical utility and efficacy of BMP-7 in diverse applications and gives us access to novel delivery technologies for BMP-7," said Joseph Hernandez, chairman of Mariel Therapeutics. "The combined pipeline and intellectual property are expected to have a profound impact in areas of unmet medical needs."