Rallybio receives $12.5M equity milestone payment from Recursion Pharmaceuticals

Rallybio (RLYB) announced that it received an equity milestone payment of $12.5M from Recursion Pharmaceuticals (RXRX). The milestone payment was triggered by the initiation of additional preclinical studies for REV102, an investigational ENPP1 inhibitor in development for the treatment of hypophosphatasia. The $12.5M equity milestone payment is payable by Recursion pursuant to the previously announced agreement under which Rallybio sold its interest in the REV102 program to Recursion for up to $25M, including an upfront equity payment of $7.5M. Rallybio remains eligible to receive an additional $5M milestone payment in connection with the initiation of a Phase 1 clinical study, as well as low single-digit royalties on future net sales by Recursion. In addition, Rallybio may be eligible to receive certain payments in the event of Recursion’s sale of the REV102 program. With this $12.5M equity payment, Rallybio expects its cash runway to extend through 2027.