Biogen Inc. and City Therapeutics announced a strategic research collaboration to develop select novel RNA interference (RNAi) therapies, with the partnership focusing initially on a single target that mediates key central nervous system diseases. The collaboration combines City Therapeutics' next-generation RNAi engineering technologies with Biogen's proprietary drug delivery capabilities.
Financial Terms and Structure
Under the agreement terms, City Therapeutics will receive $46 million in total payments, including a $16 million upfront payment and a $30 million investment in exchange for a convertible note representing a minority equity interest in the company. 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.
Technology Platform and Approach
The collaboration will utilize City Therapeutics' next-generation RNAi engineering technologies to develop an RNAi trigger molecule combined with proprietary drug delivery technology from Biogen. The partnership will focus on tissue enhanced delivery technologies with the aim of allowing for systemic administration of medicines targeting central nervous system diseases.
"This collaboration underscores Biogen's new strategic research approach of balancing our differentiated internal capabilities with external investments in cutting-edge science," said Jane Grogan, Ph.D., Head of Research at Biogen. "With this effort, we are further expanding the modalities in our R&D toolbox to potentially reach our targets of interest more precisely by adding an RNAi-based approach."
Development and Commercialization Strategy
Biogen will be responsible for IND-enabling studies and global clinical development along with any regulatory submissions and all activities related to commercialization. This division of responsibilities leverages City Therapeutics' specialized RNAi platform expertise while utilizing Biogen's established clinical development and commercial infrastructure.
"Partnering with Biogen represents a meaningful milestone in our mission to expand the therapeutic reach of RNAi, as we pioneer the next generation of RNAi technology for breakthrough medicines," said Andy Orth, Chief Executive Officer of City Therapeutics. "By combining our novel RNAi platform with Biogen's industry-leading capabilities in global drug development, we aim to accelerate the advancement of therapies for serious diseases."
Company Backgrounds
City Therapeutics is a biopharmaceutical company harnessing next-generation engineering of RNAi trigger molecules to improve and expand the reach of RNAi-based medicines. The company is building a pipeline of innovative RNAi therapeutics across multiple therapeutic areas and has raised $135 million from leading life sciences investors. Co-founded by pioneering executives and scientists in RNAi, City Therapeutics is based in Cambridge, Massachusetts.
Biogen, founded in 1978, is a leading biotechnology company that pioneers innovative science to deliver new medicines. The company applies deep understanding of human biology and leverages different modalities to advance first-in-class treatments or therapies that deliver superior outcomes.
