By Katherine Hamilton

Biogen and City Therapeutics are collaborating to develop select RNAi therapies in a $46 million partnership.

City Therapeutics, a private biopharmaceutical company, will offer its RNAi-engineering technology to develop a trigger molecule combined with the drug-delivery technology from Biogen, the two Cambridge, Mass., companies said Tuesday. Biogen will also be responsible for commercialization efforts, including global clinical development and regulatory submissions.

Biogen plans to pay City $16 million up front. It will also make a $30 million investment in exchange for a convertible note from City, which would represent a minority equity interest in City if converted.

Biogen plans to record its upfront payment as an acquired in-process research-and-development expense in the second quarter, it said. If the initial program achieves certain milestones, City will be eligible to receive up to about $1 billion in payments, plus tiered royalties based on net sales.

The project will first focus on a single target that mediates central nervous-system diseases, the companies said. Biogen can select one more target in the collaboration, which is subject to an additional payment.

"This collaboration underscores Biogen's new strategic research approach of balancing our differentiated internal capabilities with external investments in cutting-edge science," Biogen Head of Research Jane Grogan said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 27, 2025 08:16 ET (12:16 GMT)

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