City Therapeutics and Bausch + Lomb collaborate on preclinical RNAi eye therapy

City Therapeutics, a biotech startup, is making strategic moves to enhance its presence in the field of ophthalmology with a newly appointed CEO and a promising partnership. This week, the company announced Andy Orth as the new CEO, succeeding in fortifying its leadership. Orth, who worked alongside John Maraganore, the executive chair at City Therapeutics, during his tenure at Alnylam, also served as the chief commercial officer at Krystal Biotech from 2021 to 2023.

City Therapeutics has signed a significant partnership with Bausch + Lomb, focusing on developing an innovative treatment for eye diseases, particularly geographic atrophy (GA). This collaboration, announced on Friday morning, underscores City’s ongoing efforts to accelerate its growth and development. The partnership centers around creating an intravitreal RNA interference (RNAi) treatment for GA, marking a substantial initiative in the ophthalmic pharmaceutical space. The research and development are currently in the discovery phase, with the potential for Bausch + Lomb to take charge of all subsequent investigational new drug (IND)-enabling studies and clinical development if they choose to proceed.

The financial terms of the deal remain partly undisclosed, but City Therapeutics has received an initial cash payment and stands to earn up to $485 million in royalties, contingent upon the successful advancement and commercialization of the treatment. This deal is a continuation of City’s swift progress following its $135 million Series A funding round unveiled in October of last year.

Bausch + Lomb, a notable player in ophthalmology, brings its extensive experience and existing market presence to the partnership. The company already markets a variety of glaucoma medications, including Vyzulta, Timoptic, and Istalol, reinforcing its leadership in eye care. Earlier in June 2023, Bausch + Lomb expanded its eye drug portfolio significantly by acquiring Novartis’ eye medication Xiidra for a substantial $1.75 billion. This acquisition was a strategic move to bolster its product offerings in the ophthalmology sector.

The CEO of Bausch + Lomb, Brent Saunders, had indicated after the Xiidra acquisition that the company would likely focus on smaller, more targeted deals to complement its existing business strategy. The partnership with City Therapeutics aligns with this approach, suggesting a calculated expansion in their operations without overextending resources.

City Therapeutics, with its latest strategic decisions and an experienced new CEO at the helm, is poised to make an impact in the biotech industry. The collaboration with Bausch + Lomb not only provides City with financial resources but also with valuable expertise in clinical development and market positioning. As both companies navigate the discovery phase of their joint project, the potential for a groundbreaking treatment in the fight against geographic atrophy represents a significant opportunity for innovation in eye care.

This venture illustrates City’s commitment to leveraging partnerships and leadership changes to drive growth and advance its mission in the pharmaceutical landscape. With the backing of Bausch + Lomb and the leadership of Andy Orth, City Therapeutics is well-positioned to explore new horizons in the treatment of eye diseases, potentially bringing transformative therapies to patients in need.