Akebia Therapeutics (AKBA) said Monday that it has built a rare kidney disease pipeline around a complement inhibitor acquired from Q32 Bio (QTTB) and an existing drug now in a mid-stage study for focal segmental glomerulosclerosis.

The drug is expected to enter a mid-stage basket trial for complement-mediated kidney diseases in H2 of next year with initial data in 2027, the company said.

On Friday, Akebia said it agreed to pay Q32 Bio $7 million upfront for global rights to the kidney disease drug, $3 million six months after close, and other development and commercial milestones plus tiered royalties on annual net sales.

The second asset, praliciguat, an oral drug for patients with heart failure and diabetic kidney disease licensed from Cyclerion Therapeutics, has moved into a mid-stage trial in up to 60 US patients with focal segmental glomerulosclerosis, Akebia said.

Both AKB 097 and praliciguat are expected to start treating patients next year as Akebia targets multiple complement-mediated rare kidney conditions, the company said.

Shares of Akebia were up by more than 5%, while shares of Q32 Bio increased by more than 110% in recent Monday premarket activity.