Biotech firm Regulus has teamed up with pharmaceutical company AstraZeneca (AZ), that will see AZ hand over $28m in equity and an upfront fee ahead of its planned flotation.
In addition, Regulus is eligible to receive pre-clinical milestone payments based on the success of pre-clinical development for AZ. The company could profit from clinical milestones based on successful development, as well as significant launch and commercial milestone payments. It would also be entitled to royalties on the successful commercialisation of microRNA products released by AZ.
Regulus also said it will be entering into collaboration with Biogen Idec to identify microRNAs as biomarkers for multiple sclerosis. Biogen will make an as-yet-unspecified investment in Regulus, as well as upfront and milestone payments.
Regulus, formed from a joint venture between US-based Alnylam Pharmaceuticals and Isis Pharmaceuticals in 2007, has previously attracted two big pharma names to support their microRNA work. In April 2008, the Calif.-based company formed a strategic alliance with pharmaceutical heavyweight GlaxoSmithKline (GSK) to develop treatments for inflammatory diseases. Regulus received $20m in upfront payments from GSK, with a potential of nearly $600m in option, license, and milestone payments on top.
The company went on to attract a $750m microRNA discovery and development deal with Sanofi-Aventis, receiving $25m upfront and a $10m venture investment in October 2010. The company were also offered an option on a wider R&D alliance worth $50m.
The alliance between Anglo-Swedish AstraZeneca and Regulus will see both companies collaborate on the discovery, development, and commercialisation of microRNA therapeutics for three targets which are currently in pre-clinical development.
One of the central targets will include Regulus’ cardiovascular disease programme aimed at treating atherosclerosis; a disease that causes artery walls to thicken and thought to be linked to cholesterol and smoking.
“Regulus is pleased to form another significant strategic alliance on microRNA therapeutics,” said Regulus CEO and president Kleanthis Xanthopoulos, in a statement.
He added: “AstraZeneca is a global, innovation-driven company that we believe can greatly aid our efforts to advance microRNA therapeutics to the clinic and the market. The entire field of RNA therapeutics has been rapidly advancing, reaching significant milestones recently. We are committed to realize the broad utility of these new RNA-based medicines to treat human disease in the future.”
MicroRNA is thought to regulate the expression of roughly a third of all genes. The continued research is offering new methods to treat diseases.
Founded in 2007 with assets from gene-silencing specialists Alnylam Pharmaceuticals and Isis Pharmaceuticals, Regulus has raised a total of $106.6m in upfront deal fees and other funding rounds.
In its regulatory filing for its initial public offering, Regulus said France-based drugs peer Sanofi would buy up to $10m of its common stock at the flotation price with both GSK and Isis wanting $2m each.