Eli Lilly Expands RNA Therapeutics Portfolio with $1.2B SangeneBio Deal

Eli Lilly has solidified its position in the RNA therapeutics space with a significant $1.2 billion partnership with Boston-based SangeneBio. The collaboration, announced on Saturday, focuses on developing RNAi-based treatments for metabolic diseases using SangeneBio's proprietary LEAD (Ligand and Enhancer Assisted Delivery) platform.

Deal Structure and Financial Terms

The agreement includes an upfront payment and equity investment from Lilly, though specific amounts were not disclosed. The total potential value of $1.2 billion encompasses discovery, development, regulatory, and commercial milestone payments. Additionally, SangeneBio will be eligible for tiered royalties on sales of any resulting products.

Under the terms of the partnership, SangeneBio will identify optimized LEAD-based RNAi molecules for an undisclosed number of metabolic targets. Lilly will then take over each program for IND-enabling studies and subsequent development stages.

Technological Advancements in RNAi Delivery

SangeneBio's LEAD platform is at the heart of this collaboration, offering several key advantages:

1. Targeted delivery of RNAi therapeutics to muscles, fat tissues, or the central nervous system
2. Use of "clinically validated chemistries" for a potentially de-risked safety profile
3. Ability to produce subcutaneously delivered, long-acting therapies
4. Potential for infrequent dosing, with administration as seldom as twice per year

Weimin Wang, Ph.D., CEO of SangeneBio, highlighted the significance of the partnership, stating, "Partnering with Lilly represents a strong validation of our innovative and differentiated LEAD platform for tissue-selective delivery of RNAi medicines."

Lilly's Strategic Focus on RNA Therapeutics

This latest deal is part of Lilly's broader strategy to strengthen its position in the RNA therapeutics landscape. Recent moves by the pharmaceutical giant include:

1. A $13 million upfront deal with Creyon Bio for AI-designed oligonucleotide therapies
2. A $1.3 billion agreement with Rznomics to develop a hearing loss therapy using trans-splicing ribozyme technology
3. Opening a $700 million R&D center in Boston Seaport in August 2024, boosting RNA and DNA research capabilities
4. Previous partnerships with MiNA Therapeutics and ProQR Therapeutics

The SangeneBio collaboration adds to Lilly's already robust metabolic portfolio, which includes the obesity blockbuster Zepbound and next-generation weight loss drugs like orforglipron and retatrutide.