Eli Lilly is further expanding its RNA medicine strategy by tapping South Korea’s Rznomics for a $1.3 billion biobucks deal focused on treating hearing loss.
The centerpiece of the agreement is Rznomics’ trans-splicing ribozyme platform, which the Seongham, South Korea-based company has touted as enabling “precise RNA editing and has broad applicability across multiple indications.” The plan is for the companies to use the platform to co-develop a therapy for inherited hearing loss.
The treatment will be focused specifically on sensorineural hearing loss, which is the most common cause of hearing loss. Rznomics will conduct early-stage research before handing over responsibility to Lilly for further development and, hopefully, commercialization.
While Rznomics will receive an upfront payment from Lilly as part of the financial package, the biotech didn’t break down the details in its May 15 release. The total value of the deal could reach $1.3 billion, with the South Korean biotech also in line for a slice of the royalties, should the therapy make it to market.
“We are thrilled to collaborate with Lilly, a global leader in pharmaceutical innovation,” Rznomics CEO Seong-Wook Lee said in the release. “This partnership validates our trans-splicing ribozyme platform and opens the door to treating previously intractable diseases with precision RNA therapeutics.”
Rznomics’ lead clinical-stage candidate is RZ-001, an RNA replacement enzyme-based gene therapy aimed at liver and brain cancer.
Meanwhile, Lilly has stepped up its RNA therapeutics strategy in recent months, including a $13 million upfront deal with Creyon Bio two weeks ago to develop AI-designed oligonucleotide therapies spanning a “a broad range of diseases.” Oligonucleotides work as short strands of synthetic DNA or RNA that can reduce, restore or modulate RNA through several different mechanisms.
In August 2024, the Big Pharma opened a $700 million R&D center in the Boston Seaport, boosting its RNA and DNA research capabilities. Further back, Lilly has clinched RNA-focused deals with the likes of MiNA Therapeutics and ProQR Therapeutics.