Bayer partners with NextRNA in $547m lncRNA deal

Bayer has formed a strategic partnership with the biotech startup NextRNA Therapeutics to create small molecule therapeutics focusing on long non-coding RNAs (lncRNAs) in oncology. This collaboration could potentially bring NextRNA up to $547 million if all developmental milestones are achieved. Additionally, an undisclosed upfront payment is part of the agreement.

The collaboration will focus on two oncology programs. The first program will develop a small molecule targeting a specific lncRNA, which is currently in early preclinical stages at NextRNA. The second program involves NextRNA identifying lncRNA targets using its proprietary platform, with Bayer having the option to select one of these targets for joint development.

NextRNA, a spinout from Dana-Farber Cancer Institute, emerged from stealth mode in 2022. It garnered $9.3 million from a seed financing round and an additional $46.8 million from a Series A round. This deal with Bayer marks the first prominent collaboration for the fledgling biotech firm, which is dedicated to addressing diseases driven by lncRNAs.

lncRNAs, molecules exceeding 200 nucleotides in length, play pivotal roles in regulating gene expression without coding for proteins. Their involvement in various cellular processes has significant implications for cancer, influencing tumour growth, metastasis, drug resistance, and angiogenesis.

There is growing interest in the lncRNA field, with several companies exploring various strategies to modulate their function. These strategies include antisense oligonucleotides, small interfering RNAs (siRNAs), CRISPR/Cas9 technology, small molecules, and RNA aptamers.

In June 2023, Flamingo Therapeutics secured a €1.7 million grant from Flanders Innovation & Entrepreneurship (VLAIO) to further its lncRNA program, FTX-001, targeting the MALAT-1 lncRNA. This preclinical candidate is being developed in partnership with Ionis Pharmaceuticals and aims to enter Phase I trials for solid tumours.

This latest deal with NextRNA comes on the heels of Bayer's announcement of significant job cuts. Since the beginning of the year, Bayer has reduced its workforce by 3,200 positions, as disclosed in its Q2 2024 earnings call. Earlier in the year, the German pharmaceutical giant outlined a new operating model aimed at reducing bureaucracy and enhancing decision-making speed. These structural changes are part of Bayer’s broader strategy to achieve annual savings of €2 billion by 2026.

Commenting on the collaboration, Juergen Eckhardt, head of business development and licensing at Bayer’s pharmaceutical division, stated: “With NextRNA’s exceptional expertise and lncRNA platform, we aim to advance novel small molecule therapeutics against a new class of targets in oncology. This partnership further adds to our mission to build one of the most transformative and diversified oncology pipelines in the industry.”

This partnership underscores Bayer's ongoing commitment to innovation and diversification within its oncology pipeline, leveraging NextRNA's specialized knowledge in lncRNA biology to potentially introduce groundbreaking treatments for cancer.