Rani Enters Collaboration with Chugai, Raises $60.3 Million

Rare Daily Staff

Rani Therapeutics said it has entered into a collaboration and license agreement with Chugai Pharmaceutical for the development and commercialization of an oral product that combines Rani’s oral delivery technology with Chugai’s rare disease antibody in development.

Separately, the company announced that Samsara BioCapital led a $60.3 million private placement financing with participation from other new and existing investors, including RA Capital Management, Anomaly, Special Situations Funds, Invus, and founder and Chairman Mir Imran.

Under the terms of the collaboration with Chugai, Rani will receive a $10 million upfront payment and is eligible to receive up to $75 million in technology transfer and development milestones, up to $100 million in sales milestones, and single-digit royalties on product sales for the first license agreement. Chugai has the option to extend its rights to partner with Rani on up to five additional drug targets under similar deal terms, bringing the total potential deal value to more than $1 billion.

Rani has developed the RaniPill capsule, a novel, proprietary, and patented platform technology intended to replace subcutaneous injection or intravenous infusion of biologics and drugs with oral dosing. The company has successfully conducted several preclinical and clinical studies to evaluate safety, tolerability, and bioavailability using its RaniPill capsule technology.

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

“This partnership represents a convergence of Rani’s cutting-edge oral delivery platform technology and Chugai’s expertise in the research, development, and commercialization of complex antibodies in global markets for multiple disease areas with high unmet medical needs, including rare and immunologic diseases,” said Talat Imran, CEO of Rani Therapeutics. “There are many cases where oral therapies for the treatment of multiple disease areas with high unmet medical needs, including rare and immunologic diseases, are limited, and as a result, patients rely primarily on injections that can be burdensome and impact adherence.”

Photo: Talat Imran, CEO of Rani Therapeutics