Bayer and NextRNA Therapeutics, a biotechnology company, announced that they would be working together to create a new type of small molecule cancer drug. The two companies agreed to a deal that could be worth over $500 million.
The two companies will use NextRNA’s technology to move forward with two small molecule drugs that target cancers that are caused by long non-coding RNA that is not working properly. NextRNA could get up to $547 million from the deal, which includes an advance payment that neither company said anything about.
The companies also didn’t say what kinds of cancer or drug targets they would be going after, but they did say that they wanted to make the two projects work for conditions with “high unmet need.” For now, NextRNA is trying the first program in an experimental setting. Bayer will have the choice to choose another target for shared research.
A lot of DNA is turned into RNA that doesn’t code for specific proteins. This type of RNA is called “non-coding RNA.” Long non-coding RNAs are put into groups based on their size, which lets structures form that work with RNA-binding proteins.
NextRNA says that these relationships can go wrong, which can lead to diseases like cancer or immune system problems. The company’s technology is meant to stop long non-coding RNA and RNA-binding proteins from sticking together.
NextRNA started up for real in 2022, with $56 million to improve its platform. Its technology was based on studies by Carl Novina, a scientist at the Dana-Farber Cancer Institute who also helped to start the company.
They want to find new small molecule medicines that can target a different group of cancer targets, according to a statement from Juergen Eckhardt, who is in charge of business growth and licensing at Bayer’s drugs section.
Bayer will also be able to use NextRNA’s computer software NextMap as part of the deal.
