Biogen Partners City Therapeutics To Develop Select Novel RNAi Therapies

(RTTNews) - 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.