Eli Lilly Joins Forces with AI Startup Genetic Leap in $409M Deal Centered Around RNA-Targeted Drug Discovery

Eli Lilly and Co. (LLY.N), a major global pharmaceutical company, has formed a research partnership with Genetic Leap, a startup that uses artificial intelligence (AI) and machine learning for drug discovery. The deal is valued at $409 million and focuses on developing new drugs, particularly those targeting RNA-based therapies.

$409M Deal with Upfront and Milestone Payments to Drive Oligonucleotide Drug Development

Eli Lilly will use Genetic Leap’s RNA-targeted AI platform to develop oligonucleotide drugs for selected targets. The New York biotech said this partnership builds on a successful pilot program with Lilly. Genetic Leap will receive up to $409M in upfront and milestone payments, along with tiered royalties. CEO and founder Bertrand Adanve expressed enthusiasm for the collaboration, stating, “We are thrilled to collaborate with Lilly and deeply share their strong commitment to developing RNA medicines.” Genetic Leap aims to accelerate drug development through this collaboration with Lilly’s R&D team. “Our primary goal in building the Genetic Leap AI platform is to accelerate the development of life-saving medicines for patients,” Adanve added.

Eli Lilly will access Genetic Leap’s AI technology to develop RNA-targeted medicines. These RNA-based therapies aim to treat diseases by targeting their genetic causes, specifically focusing on disease-related genes. According to Lilly, over 25% of its drug development pipeline consists of genetic medicines designed to modify or correct genetic factors responsible for diseases. In parallel, Genetic Leap’s technology helps identify new drug targets and also finds ways to address “undruggable” targets—genes or proteins that are difficult to treat with conventional drugs.

Recent Market Trends in RNA-Based Drug Development and Its Role in Advancing Immunotherapy

This deal highlights a Genetic Leap is part of a group of biotech companies challenging traditional views on targeting RNA with drugs. In an increasing trend, numerous biotechnology companies are actively exploring RNA manipulation to block genes that produce harmful, disease-causing proteins. The goal is to prevent diseases by disrupting the genetic instructions that create these proteins. Historically, RNA was considered unsuitable for small molecules due to its naturally polarized nature and shallow binding pockets. However, over the past decade, companies like Arrakis Therapeutics have emerged and started developing methods to target RNA effectively.

The announcement of the deal follows Lilly’s recent expansion into RNA research, marked by the opening of a $700 million nucleic acid R&D center in the Boston Seaport. Lilly made this investment after recognizing that enhancing the delivery of DNA and RNA medicines could help target challenging areas, including autoimmune diseases, neurodegeneration, diabetes, and obesity. The focus on RNA-targeted drug development and advanced drug delivery methods supports the expanding field of immunotherapy. Biotech companies are increasingly exploring RNA-based drugs as part of their novel drug development processes. This trend is evident in the growing number of partnerships and acquisitions in the industry.

Last year, Eli Lilly acquired Dice Therapeutics for $2.4 billion. Dice Therapeutics specializes in oral treatments for autoimmune diseases, enhancing Lilly’s immunology capabilities. The trend of pharmaceutical companies acquiring biotech firms specializing in autoimmune diseases continued. In April, Merck acquired Prometheus Biosciences for $10.8 billion, paying a 75% premium over the share price at that time. Additionally, other pharmaceutical giants are closely monitoring Argenx, a European biotech company set to release key data this month.

AI-Driven Collaborations in Pharma: Strategic Acquisitions

In June, Lilly announced a collaboration with OpenAI to leverage generative AI for developing novel antimicrobials targeting drug-resistant pathogens. Antimicrobial resistance (AMR) continued to be a significant global public health threat. Earlier in May, Sanofi, Formation Bio, and OpenAI partnered to create AI-powered software for drug development. They combined data, software, and models to develop solutions throughout the drug development lifecycle, advancing Sanofi’s aim to become a leading AI-powered biopharma company. In 2022, Astellas teamed up with Genetic Leap to utilize its AI platform for developing RNA-targeted small molecules for an undisclosed oncology target.

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