By Fineline Cube 
US-based Biogen Inc. (NASDAQ: BIIB) announced a strategic collaboration with compatriot firm City Therapeutics, Inc. to develop novel RNA interference (RNAi) therapies. This partnership aims to advance treatments for central nervous system (CNS) diseases through cutting-edge RNAi technology.
Collaboration Details
Under the agreement, City Therapeutics will utilize its next-generation RNAi engineering technology to develop RNAi trigger molecules. These molecules will be combined with Biogen’s proprietary drug delivery platform. The initial focus will be on a key CNS disease target, employing tissue-enhanced delivery technology to enable systemic administration of the drug.
Financial Terms
Biogen will lead pre-IND studies, global clinical development, regulatory submissions, and commercialization activities. City Therapeutics will receive total payments of USD 46 million, including an upfront payment of USD 16 million and a USD 30 million investment via convertible notes. Upon conversion, Biogen will hold a minority equity stake in City Therapeutics.
Milestone Payments and Royalties
City Therapeutics is eligible for up to approximately USD 1 billion in potential milestone payments tied to specific development and commercial achievements for the initial program. Additionally, tiered royalties ranging from high single-digit to low double-digit percentages of net sales will be provided. Biogen retains the option to select an additional target under the collaboration, subject to an additional payment and target availability.-Fineline Info & Tech