(Reuters) -Replicate Bioscience will partner with Novo Nordisk to develop treatments using self-replicating RNA technology for obesity, type 2 diabetes and other cardiometabolic diseases, the privately held biotech company said on Thursday.
As part of the deal, Danish drugmaker Novo will get an exclusive, worldwide license to use Replicate’s proprietary srRNA platform for developing the treatments.
Replicate will receive research funding and up to $550 million from Novo Nordisk, including potential milestone payments. It is also eligible for tiered royalties on future product sales.
The partnership comes as concerns of Novo losing its first-mover advantage in the obesity drug market to American rival Eli Lilly rise.
Novo also expects more competition from copycat versions of its blockbuster Wegovy obesity drug this year, it said earlier this month.
The San Diego-based Replicate’s srRNA technology “enables patients’ cells to naturally generate their own therapeutic proteins,” said Rachael Lester, chief business officer.
The technology triggers stronger immune responses and has improved safety compared with current RNA drugs, the company said.
Replicate is also testing a vaccine for rabies and therapies for lung and breast cancer, among other experimental treatments.
Last year, Eli Lilly had partnered with Swiss biotech Haya Therapeutics to develop RNA-based drugs for obesity.
(Reporting by Puyaan Singh in Bengaluru; Editing by Sahal Muhammed)
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