Rani Therapeutics Q2 2024 Financial Results and Corporate Update

Rani Therapeutics Holdings, Inc., a clinical-stage biotherapeutics firm specializing in the oral delivery of biologics and pharmaceuticals, has released its financial results for the quarter ending June 30, 2024, alongside a corporate update. This quarter marked significant advancements, notably the collaboration with ProGen for the development of RT-114, an oral RaniPill® capsule designed to treat obesity.

Rani Therapeutics has entered into an agreement with ProGen, a South Korean biotech company. This partnership focuses on the co-development and commercialization of RT-114, incorporating ProGen’s PG-102, a GLP-1/GLP-2 dual agonist. The agreement stipulates a 50/50 cost and revenue sharing arrangement, with Rani leading the development and commercialization efforts in the United States, Europe, Canada, and Australia, while ProGen will manage the rest of the world. The Phase 1 study for RT-114 is scheduled to begin in 2025.

In financial terms, Rani Therapeutics successfully raised approximately $10.0 million through the issuance of Class A common stock and warrants in July 2024. This funding will likely bolster the company’s ongoing and upcoming projects.

Additionally, ProGen presented data from a Phase 1 study of PG-102 at the 2024 American Diabetes Association conference. The study suggested that PG-102 has a favorable safety profile with fewer gastrointestinal side effects compared to similar trials by competitors.

In May 2024, Rani Therapeutics presented at Digestive Disease Week®, showcasing clinical and preclinical data on the RaniPill® capsule. The oral delivery platform was shown to reliably and safely administer an ustekinumab biosimilar, RT-111, with high bioavailability in human subjects, comparable to subcutaneous injections in canine models.

Looking ahead, Rani anticipates initiating a Phase 1 clinical trial of RT-114 in 2025. This trial aims to evaluate the efficacy of the oral GLP-1/GLP-2 dual agonist in treating obesity.

As of June 30, 2024, Rani's cash, cash equivalents, and marketable securities totaled $30.9 million, a decline from $48.5 million at the end of December 2023. Research and development expenditures for the second quarter of 2024 amounted to $6.1 million, down from $11.1 million in the same period of the previous year. This reduction was primarily due to lower compensation costs and reduced spending on third-party services and supplies. General and administrative expenses also decreased to $6.4 million from $7.2 million, primarily due to lower compensation costs, partially offset by higher facility expenses related to a new lease in Fremont, California. The net loss for the quarter was $13.4 million, compared to $18.7 million in the same period of 2023.

Rani Therapeutics continues to innovate in the field of oral biologics delivery with its RaniPill capsule technology, which aims to replace subcutaneous injections or intravenous infusions with oral dosing. The company has conducted multiple preclinical and clinical studies to evaluate the safety and efficacy of this technology.

The company's ongoing efforts and recent partnerships are envisioned to enhance its position in the biotherapeutics market, particularly in the treatment of obesity through innovative oral delivery systems.