Genentech Expands Molecular Glue Collaboration with Orionis in $2B+ Deal

Genentech, a subsidiary of Roche, has announced a second multi-year agreement with Orionis Biosciences to develop small-molecule molecular glues for cancer treatment. The deal, worth potentially over $2 billion, solidifies Genentech's position in the increasingly competitive molecular glue space.

Genentech's Strategic Investment in Molecular Glues

Under the terms of the new agreement, Genentech will pay Orionis $105 million upfront, with the potential for more than $2 billion in additional research, development, commercial, and net sales milestone payments. Orionis will also be eligible for tiered royalties on any marketed products resulting from the collaboration.

This latest partnership builds upon a previous agreement between the two companies, inked in 2023, which focused on developing molecular glues for both cancer and neurodegeneration. The initial deal saw Genentech provide $47 million upfront, with up to $2 billion in potential milestone payments.

Niko Kley, CEO of Orionis, expressed enthusiasm about the expanded collaboration, stating, "We are thrilled about this second collaboration with Genentech, which expands our collaborative efforts in applying induced proximity concepts to include molecular glue types beyond targeted protein degraders."

Rising Interest in Molecular Glue Technology

The pharmaceutical industry has seen a surge of interest in molecular glue technology, with several major players entering the field in recent years. Molecular glues are small molecules designed to stick two proteins together, potentially offering new approaches to treating various diseases, including cancer.

Bristol Myers Squibb was an early entrant into this space, acquiring Celgene for $74 billion in 2019 and gaining control of its molecular glue portfolio, including the blockbuster cancer drug Revlimid. Since then, other pharmaceutical giants have followed suit:

• Novo Nordisk partnered with Neomorph in a $1.46 billion deal focused on rare diseases and cardiovascular targets.
• Biogen committed up to $1.45 billion to leverage Neomorph's technology for neurological and immunology indications.
• Takeda entered a $1.2 billion agreement with Degron Therapeutics.
• AbbVie enlisted Neomorph for a potential $1.64 billion collaboration in oncology and immunology.
• Eli Lilly formed a $1.25 billion partnership with Magnet Biomedicine.

Boris Zaïtra, head of Roche corporate business development, highlighted the potential of this technology, saying, "Molecular glues, including protein degraders and non-degraders, are an exciting therapeutic modality, providing access to disease-related proteins that have proven challenging and elusive to more traditional treatment modalities."