Biogen partners with City Therapeutics to develop select novel RNAi-based therapies

Biogen Inc, a leading biotechnology company committed to advancing transformative medicines, and City Therapeutics Inc, a privately held biopharmaceutical company specializing in next-generation RNAi trigger molecules, have announced a strategic collaboration to co-develop novel RNAi therapies.

Through this partnership, City Therapeutics will apply its proprietary RNAi engineering platform to develop an RNAi trigger molecule targeting a key mediator of central nervous system (CNS) diseases. This effort will incorporate Biogen’s proprietary drug delivery technologies aimed at enabling systemic administration of the RNAi-based treatment.

Biogen will lead IND-enabling studies, global clinical development, regulatory filings, and all commercialization activities for the program.

Advancing RNAi-Based CNS Therapies

Jane Grogan, head of research at Biogen, commented:

"This collaboration underscores Biogen’s new strategic research approach of balancing our differentiated internal capabilities with external investments in cutting-edge science. With this effort, we are further expanding the modalities in our R&D toolbox to potentially reach our targets of interest more precisely by adding an RNAi-based approach. We are excited to collaborate with City Therapeutics and their world-class scientists on key programs, as well as to invest in their company as part of this innovative effort to develop new approaches to treating disease."

Andy Orth, chief executive officer of City Therapeutics, added:

"Partnering with Biogen represents a meaningful milestone in our mission to expand the therapeutic reach of RNAi, as we pioneer the next generation of RNAi technology for breakthrough medicines. By combining our novel RNAi platform with Biogen’s industry-leading capabilities in global drug development, we aim to accelerate the advancement of therapies for serious diseases. We look forward to demonstrating the potential of our RNAi platform in addressing this area of significant unmet need."

Financial Terms of the Agreement

Under the terms of the deal:

• City Therapeutics will receive $46 million in total payments, comprising a $16 million upfront payment and a $30 million investment through a convertible note.
• The convertible note represents a minority equity interest in City Therapeutics if converted.
• The upfront payment will be recorded by Biogen as an Acquired In-Process Research and Development expense in Q2 2025.
• City Therapeutics is eligible for up to approximately $1 billion in development and commercial milestone payments.
• Tiered royalties in the high single-digit to low double-digit range will apply based on net sales of any approved products.
• Biogen also holds an option to select an additional target for development, pending an additional payment and target availability.

About Biogen

Biogen applies a deep understanding of human biology and utilizes a range of therapeutic modalities to develop first-in-class treatments. The company focuses on bold, risk-balanced innovation to deliver superior outcomes and long-term growth. Biogen’s areas of focus include neuroscience, rare diseases, and immunology.

About City Therapeutics

City Therapeutics is developing a pipeline of RNAi therapeutics targeting unmet needs across multiple therapeutic areas. The company is based in Cambridge, Massachusetts, and was co-founded by leading scientists and executives in RNAi. It has raised $135 million from top-tier life sciences investors.

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