Rani Therapeutics on Friday announced a licensing deal to develop and sell an oral version of Chugai Pharmaceutical’s experimental antibody, with options to expand to five additional drugs, potentially valuing the deal at $1.09 billion.
Shares of San Jose-based Rani more than doubled in premarket trading.
Under the deal, Rani will receive a $10 million upfront payment, up to $75 million in technology transfer and development milestones, as well as up to $100 million in sales milestones and single-digit royalties for the first licensed program, which targets a rare disease.
Tokyo-based Chugai has the option to license up to five additional under similar terms.
"This partnership combines Rani’s oral drug delivery platform and Chugai’s expertise in complex antibodies in global markets," said Talat Imran, chief executive officer of drug developer Rani.
He added in many instances, oral treatments for various diseases are limited, causing patients to rely on injections, which can be burdensome and impact adherence.
