Eli Lilly inks a licensing deal worth up to $1.2B for RNAi therapeutics

[Lilly Biotechnology Center in San Diego, California, USA.]
JHVEPhoto/iStock Editorial via Getty Images

Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) has reached a research and licensing agreement worth up to $1.2B with SanegeneBio to develop and commercialize RNAi therapeutics for metabolic diseases, the Boston, Massachusetts-based biotech announced on Saturday.

As part of its deal, Lilly (LLY [https://seekingalpha.com/symbol/LLY]) is set to make an upfront payment and equity investment in SanegeneBio as it takes over IND-enabling studies, clinical development, and commercialization of the RNAi molecules discovered by the biotech.

SanegeneBio is also eligible to receive up to $1.2B in discovery, development, regulatory, and commercial milestone payments in addition to tiered royalties on future product sales.

RNAi drugs are a new class of medicines comprising silencing messenger RNA molecules that encode for proteins implicated in disease. Leading developers of RNAi therapeutics include Alnylam Pharmaceuticals (ALNY [https://seekingalpha.com/symbol/ALNY]), Arrowhead Pharmaceuticals (ARWR [https://seekingalpha.com/symbol/ARWR]), and Wave Life Sciences (WVE [https://seekingalpha.com/symbol/WVE]).

SanegeneBio's LEAD drug delivery platform has the potential to develop injectable RNAi drugs that could lower the treatment burden with biannual dosing, the company said. [https://seekingalpha.com/pr/20299608-sanegenebio-announces-rnai-licensing-and-research-collaboration-with-lilly]

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