By Chris Wack

Shares of Rani Therapeutics Holdings have doubled, to $1.12, in premarket trading after the company said it has entered into a collaboration and license agreement with Chugai Pharmaceutical.

The biotherapeutics company said the deal is for the development and commercialization of an oral product consisting of Rani's oral-delivery technology, the RaniPill, and Chugai's rare-disease antibody in development.

For the first drug target, Rani will receive $10 million up front and is eligible to receive up to $75 million contingent upon the achievement of success-based technology transfer and development milestones. The company could also receive up to $100 million in a series of sales-based milestones, contingent upon the commercial success of the product, and single-digit royalties on sales upon successful commercialization of the product.

Chugai has the option to extend its rights to up to five additional drug targets under similar terms which, if fully exercised by Chugai, could bring the total deal value to $1.085 billion.

Rani also said Friday it has entered into a securities purchase agreement for a private placement in public equity financing that is expected to result in proceeds of $60.3 million.

The anticipated proceeds from the PIPE, together with the initial upfront payment and the expected technology-transfer milestones of $18 million from the agreement with Chugai, are expected to fund the company's operations into 2028.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

October 17, 2025 07:50 ET (11:50 GMT)

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