Roche has signed a global licensing agreement with Chinese biotech company Rona Therapeutics for an experimental obesity candidate. The maximum value of the deal is $1.16 billion, Reuters reported, citing Rona.
Under the terms of the agreement, Rona will receive up to $100 million in upfront and near-term payments. The company is also entitled to up to $1.06 billion upon completion of milestones in the development, regulatory approval and commercialization of the therapy, as well as differentiated royalties on global net sales.
Therapy targets fat tissue
The candidate uses RNA interference - an approach in which small RNA molecules suppress the activity of a specific gene. In this case, the target is the ALK7 receptor, encoded by the ACVR1C gene and expressed primarily in fat cells.
According to Rona, ALK7 inhibition could directly affect adipose tissue, including visceral fat accumulation, while preserving lean body mass. This is a different approach than that of incretin drugs, which primarily affect appetite and food intake. The therapy remains experimental and is yet to go through the necessary clinical and regulatory stages.
“Obesity is a complex chronic disease that requires new mechanisms for better and more sustainable weight loss“, said Stella Shi, CEO and founder of Rona Therapeutics.From Roche, Boris L. Zaitra, head of corporate business development, defined the partnership as a complement to the company's portfolio in the field of metabolic diseases.
Roche expands its market presence
The deal is another step for Roche in its attempt to enter the market for anti-obesity drugs, which is currently dominated by Eli Lilly and Novo Nordisk. The Swiss company is also developing its own experimental drug enicepatide – a once-weekly injectable drug that activates GLP-1 and GIP receptors.
In September, Roche reported positive phase II results in people with type 2 diabetes and overweight or obese. The highest dose saw an average weight loss of 15.5% over 48 weeks, and blood sugar levels also improved. Enicepatide, like Rona's candidate, has not yet been approved as a drug.
Next payments under the new agreement will depend on program progress, regulatory approvals and future sales. A specific timeline for the start of trials of Rona's therapy has not been announced.
Sources: reuters.com, malaysia.news.yahoo.com, en.prnasia.com