WESTON (dpa-AFX) - Biogen Inc. (BIIB) and City Therapeutics, Inc., a privately held biopharmaceutical company, announced Tuesday a strategic collaboration to develop select novel RNAi therapies.
Through the collaboration, City Therapeutics will leverage its next-generation RNAi engineering technologies to develop an RNAi trigger molecule combined with proprietary drug delivery technology from Biogen.
The collaboration will initially focus on a single target that mediates key central nervous system diseases, utilizing tissue enhanced delivery technologies with the aim of allowing for systemic administration of medicines.
Biogen will be responsible for IND-enabling studies and global clinical development along with any regulatory submissions and all activities related to commercialization.
Under the terms of the agreement, City Therapeutics will receive a total of $46 million in payments including a $16 million upfront payment and an investment of $30 million in exchange for a City Therapeutics convertible note, representing a minority equity interest in the company if converted.
The upfront payment will be recorded by Biogen as an Acquired In-Process Research and Development expense in the second quarter of 2025.
Should the initial program achieve certain development and commercial milestones, City Therapeutics is eligible to receive up to approximately $1 billion in potential milestone payments plus tiered royalties in the high single-digit to low double-digit range based on net sales.
Biogen will have the option to select one additional target in the collaboration, subject to an additional payment and availability of the target.
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