Biogen Inks RNAi Deal as Industry Sees Mixed Fortunes in Drug Development

Biogen has partnered with RNA drug developer City Therapeutics in a deal worth $46 million, signaling a strategic expansion into RNAi-based approaches for central nervous system diseases. Meanwhile, other pharmaceutical companies face both triumphs and setbacks in their drug development efforts.

Biogen's RNAi Venture and Grin Therapeutics' Licensing Deal

Biogen will pay City Therapeutics $16 million upfront and invest an additional $30 million in convertible notes, potentially leading to a minority stake in the startup. The collaboration aims to develop a novel method for targeting key mediators of central nervous system diseases using RNAi technology.

In a separate development, Grin Therapeutics has secured a $50 million deal with Angelini Pharma, granting the latter rights outside North America for radiprodil, an experimental drug targeting genetic epilepsies and other neurological conditions. Grin also closed a $140 million Series D funding round, with Angelini and Blackstone Life Sciences participating.

Regulatory Challenges and Clinical Trial Setbacks

The pharmaceutical industry faced regulatory hurdles and disappointing trial results this week. The FDA declined to review Savara's drug Molbreevi for a rare lung condition, citing an incomplete application and requesting additional manufacturing information. Savara's share price tumbled over 20% following the announcement.

In a significant setback, Prothena's late-stage trial for birtamimab, a treatment for AL amyloidosis, failed to meet its primary endpoint. The company has halted further development of the drug and is considering cost-cutting measures, including potential workforce reductions. Prothena's stock plummeted more than 30% in response to the news.

Corporate Maneuvers and Market Adjustments

Aurion Biotech, a cell therapy developer, has withdrawn its plans for an initial public offering (IPO) following a change in ownership. Alcon acquired a majority stake in Aurion in late March, replacing the biotech's CEO and prompting a reassessment of the company's strategic direction.

These developments underscore the dynamic nature of the pharmaceutical industry, where strategic partnerships, regulatory decisions, and clinical trial outcomes continue to shape the landscape of drug development and corporate strategy.