Bayer has teamed up with startup biotech NextRNA Therapeutics to develop small molecules targeting long non-coding RNAs (lncRNAs) in oncology.
Under the terms of the deal, NextRNA can get up to $547m if all the milestones are reached, and the deal also included an undisclosed upfront payment.
The companies will collaborate on two oncology programmes, the first involving a lncRNA-targeting small molecule in early preclinical development at NextRNA. For the second, NextRNA will pursue lncRNA targets identified by its platform, with Bayer having the option to choose one target for joint development.
In 2022, Dana-Farber spinout NextRNA came out of stealth with $9.3m from a seed financing round and $46.8m from a Series A. This is the first high-profile pharma deal for the startup, which focuses on lncRNA-driven diseases.
lncRNAs are RNA molecules over 200 nucleotides long that regulate gene expression without coding for proteins. They play key roles in various cellular processes, including those linked to cancer, such as tumour growth, metastasis, drug resistance and angiogenesis.
A few companies have hopped on the lncRNA space, with strategies like antisense oligonucleotides, siRNAs, CRISPR/Cas9, small molecules and RNA aptamers being explored to modulate their function.
In June 2023, Flamingo Therapeutics secured a €1.7m grant from Flanders Innovation & Entrepreneurship (VLAIO) to advance its lncRNA programme, FTX-001, that targets MALAT-1. The preclinical candidate is being developed in collaboration with Ionis Pharmaceuticals for a Phase I trial in solid tumours.
The NextRNA deal comes weeks after Bayer announced that it has cut 3,200 jobs since the beginning of the year, in its Q2 2024 earnings call. At the start of this year, the German pharma giant said that it will roll out a new operating model, one designed to cut bureaucracy and speed up decision-making following which it is aiming to make savings of €2bn a year from 2026.
In the announcement accompanying the deal, head of business development and licensing at Bayer’s pharmaceutical division Juergen Eckhardt said: “With NextRNA’s exceptional expertise and lncRNA platform, we aim to advance novel small molecule therapeutics against a new class of targets in oncology. This partnership further adds to our mission to build one of the most transformative and diversified oncology pipelines in the industry.”

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