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biotech/news//Reuters
San Jose-based Rani more than doubled in premarket trading.
Rani will receive $10 million upfront and up to $175 million in milestones from Chugai.
KEY POINTS
Chugai can license up to five additional programs from Rani under similar financial terms.
The first licensed program targets a rare disease with an oral delivery platform.
Proceeds from deals are expected to fund Rani's operations into 2028.
Shares of San Jose-based Rani more than doubled in premarket trading.
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Under the deal, Rani will receive a $10 million upfront payment, up to $75 million in technology transfer and development milestones, as well as up to $100 million in sales milestones and single-digit royalties for the first licensed program, which targets a rare disease.
Tokyo-based Chugai has the option to license up to five additional under similar terms.
This partnership combines Rani's oral drug delivery platform and Chugai's expertise in complex antibodies in global markets, said Talat Imran, chief executive officer of drug developer Rani.
He added in many instances, oral treatments for various diseases are limited, causing patients to rely on injections, which can be burdensome and impact adherence.
Rani also announced a $60.3 million private placement led by Samsara BioCapital, with participation from new and existing investors.
The company said the private placement proceeds, initial upfront payment and the expected technology transfer milestones of $18 million from Chugai are expected to fund its operations into 2028.
Reporting by Puyaan Singh in Bengaluru; Editing by Vijay Kishore