Eli Lilly Expands RNA Medicine Strategy with $1.3B Rznomics Deal for Hearing Loss Therapy

Eli Lilly has further solidified its position in the RNA therapeutics space by entering into a significant collaboration with South Korean biotech Rznomics. The partnership, valued at up to $1.3 billion, aims to develop a novel treatment for inherited hearing loss using Rznomics' proprietary trans-splicing ribozyme platform.

Deal Structure and Focus

The agreement centers on the co-development of a therapy for sensorineural hearing loss, the most common form of hearing impairment. Under the terms of the deal, Rznomics will conduct early-stage research before transferring responsibility to Lilly for further development and potential commercialization.

While the specific financial breakdown was not disclosed, the partnership includes an upfront payment to Rznomics and could reach a total value of $1.3 billion. The South Korean company is also set to receive a portion of royalties if the therapy reaches the market.

Rznomics' Technology Platform

At the core of this collaboration is Rznomics' trans-splicing ribozyme platform, which the company claims enables "precise RNA editing and has broad applicability across multiple indications." This technology is expected to play a crucial role in developing targeted treatments for previously challenging genetic conditions.

Rznomics CEO Seong-Wook Lee expressed enthusiasm about the partnership, stating, "This collaboration validates our trans-splicing ribozyme platform and opens the door to treating previously intractable diseases with precision RNA therapeutics."

Lilly's Expanding RNA Strategy

This latest deal is part of Eli Lilly's broader strategy to strengthen its presence in the RNA therapeutics field. The company has made several significant moves in recent months to bolster its capabilities in this area:

1. A $13 million upfront agreement with Creyon Bio for AI-designed oligonucleotide therapies.
2. The opening of a $700 million R&D center in Boston's Seaport district in August 2024, focused on enhancing RNA and DNA research capabilities.
3. Previous partnerships with companies such as MiNA Therapeutics and ProQR Therapeutics.

These strategic investments and collaborations underscore Lilly's commitment to advancing RNA-based treatments across a wide range of therapeutic areas, positioning the company as a major player in this rapidly evolving field of pharmaceutical research and development.