Rallybio, a clinical-stage biotechnology company dedicated to translating scientific advances into transformative therapies for patients suffering from devastating rare diseases, today announced a significant financial development. The company has received an equity milestone payment of $12.5 million from Recursion. The initiation of additional preclinical studies for REV102 triggered this milestone payment. This investigational ENPP1 inhibitor is currently in development for the treatment of hypophosphatasia (HPP), a rare and serious bone disease.
The $12.5 million equity milestone payment is part of a previously announced agreement under which Rallybio sold its interest in the REV102 program to Recursion for up to $25 million. This agreement included an upfront equity payment of $7.5 million, which Rallybio received at the time of the sale. Despite the sale, Rallybio remains eligible to receive an additional $5 million milestone payment in connection with the initiation of a Phase 1 clinical study, which is a crucial step in the drug development process. Furthermore, Rallybio is entitled to receive low single-digit royalties on future net sales by Recursion, providing a potential source of ongoing revenue.
In addition to these financial benefits, Rallybio may also be eligible to receive certain payments in the event of Recursion’s sale of the REV102 program. This potential for future payments adds another layer of financial incentive for Rallybio.
With the receipt of this $12.5 million equity payment, Rallybio is optimistic about extending its cash runway through 2027, which will provide the company with the necessary financial resources to continue its research and development efforts and advance its pipeline of innovative therapies.
This financial stability is crucial for Rallybio as it works towards bringing new treatments to patients in need, particularly those with rare diseases that currently have limited therapeutic options.
KEY QUOTE:
“This milestone reflects the continued momentum of the REV102 preclinical program. We are proud to have played a foundational role in advancing this potential first-in-class therapy for patients with HPP, a community in urgent need of better treatment options. Moreover, this non-dilutive capital further strengthens our financial position as we continue to look forward to sharing topline data from the confirmatory PK/PD study of RLYB116 in the coming months.”
Stephen Uden, M.D., Chief Executive Officer of Rallybio
