The total potential payments from the collaboration could reach $1.085 billion if all options are exercised.
Rani Therapeutics Holdings Inc. (RANI) on Friday announced that it has entered into a strategic collaboration with Chugai Pharmaceutical Co., aiming to advance the development of an oral therapeutic using its proprietary RaniPill technology.
Chugai will work with Rani to create and commercialize a new oral product based on an experimental antibody for rare diseases. Under the deal, Rani will receive $10 million upfront.
Beyond the upfront payment, Rani may earn up to $75 million in development-related milestones, another $100 million based on commercial achievements, and single-digit royalties on sales once the product reaches the market. The agreement grants Chugai an initial license for one drug target, with the possibility of expanding to five more. The total potential payments could reach $1.085 billion if all options are exercised.
Following the announcement, Rani Therapeutics' stock traded over 165% higher in Friday’s premarket.
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