Just 57 days after agreeing to sell one of its therapies to Utah-based Recursion Pharmaceuticals for up to $25 million, New Haven-based Rallybio Corp. has received $12.5 million as its first equity milestone payment.
Just 57 days after
agreeing to sell one of its therapies to Utah-based Recursion Pharmaceuticals for up to $25 million, New Haven-based Rallybio Corp. has received $12.5 million as its first equity milestone payment.
The biotechnology company, which is developing therapies for rare diseases, said the payment was triggered by the initiation of additional preclinical studies for REV102, a therapy in development to treat patients with hypophosphatasia, a rare bone disease.
The REV102 program originated from a joint venture between Rallybio and Recursion that was focused on developing novel, orally available small molecule inhibitors of ENPP1 to treat hypophosphatasia. The lead candidate from the joint venture, REV102, entered into Investigational New Drug-enabling studies earlier this year.
“This milestone reflects the continued momentum of the REV102 preclinical program,” said Dr. Stephen Uden, Rallybio’s CEO.
Uden said the payment further strengthens the company’s financial position. With the $12.5 million equity payment, Rallybio said it expects its cash runway to extend through 2027.
The $12.5 million equity milestone is payable by Recursion under the agreement announced on July 8, in which Rallybio sold its interest in the REV102 program to Recursion for up to $25 million, including an upfront equity payment of $7.5 million.
Rallybio said it remains eligible to receive an additional $5 million milestone payment with the initiation of a Phase 1 clinical study, as well as low single-digit royalties on future net sales by Recursion.
Rallybio said it also may be eligible to receive certain payments in the event of Recursion’s sale of the REV102 program.
