AstraZeneca Strikes Gene-Editing Deal with Algen Biotechnologies

Oct 6 (Reuters) – Pharmaceutical giant AstraZeneca (AZN.L) announced a licensing agreement on Monday with U.S.-based biotech firm Algen Biotechnologies to develop therapies discovered using Algen’s AI-driven gene-editing platform, in a deal potentially worth up to $555 million.

AstraZeneca gains exclusive rights to develop and commercialize any approved therapies targeting immune system-related disorders that emerge from the collaboration. In exchange, Algen will receive upfront payments and milestone payments as development progresses.

Leveraging AI for Immunology

The partnership underscores the global trend of drugmakers increasingly turning to Artificial Intelligence (AI) to accelerate drug development. Algen’s proprietary AI platform, AlgenBrain, is designed to map genes to disease outcomes, providing a strategic foundation for targeted therapy development.

Algen CEO and co-founder Chun-Hao Huang noted the synergy between the companies. “Together with AstraZeneca’s deep expertise in translational science and clinical development, we aim to uncover new biological insights to accelerate the development of novel therapies,” Huang said.

The U.S. biotech, which spun out of the UC Berkeley lab of Nobel laureate Jennifer Doudna (pioneer of the CRISPR technology), previously raised $11 million in funding. CEO Huang confirmed the company remains “well capitalized” but did not disclose details on its next funding round.

AstraZeneca’s Gene Therapy Push

The deal supports AstraZeneca’s broader strategic goal of advancing its cell and gene therapy capabilities, which is part of its plan to hit $80 billion in sales by 2030.

The Anglo-Swedish drugmaker’s existing respiratory and immunology portfolio is a significant revenue generator, bringing in $4.23 billion in sales in the first half of 2025.

This licensing agreement follows AstraZeneca’s recent moves to expand its technology base, including the agreement in March to acquire Belgian biotech EsoBiotec for up to $1 billion to gain technology for modifying immune cells directly inside the body. Unlike that deal, however, the agreement with Algen does not include AstraZeneca taking a stake in the company.