Rani Therapeutics announces $1.085B collaboration with Chugai Pharmaceutical

Rani Therapeutics (RANI) entered into a Collaboration and License Agreement with Chugai Pharmaceutical (CHGCY) for the development and commercialization of an oral product consisting of Rani’s oral delivery technology, the RaniPill, and Chugai’s rare disease antibody in development. Under the terms of the agreement for the first drug target, Rani will receive $10M up front and is eligible to receive up to $75M contingent upon the achievement of success-based technology transfer and development milestones, up to $100M in a series of sales-based milestones, contingent upon the commercial success of the product, and single digit royalties on sales upon successful commercialization of the product. In addition, Chugai has the option to extend its rights to up to 5 additional drug targets under similar deal terms which, if fully exercised by Chugai, could bring the total deal value to $1.085B. Rani has entered into a securities purchase agreement for a private placement in public equity financing that is expected to result in gross proceeds of approximately $60.3M to Rani, led by Samsara BioCapital with participation from other new and existing investors, including, RA Capital Management, Anomaly, Special Situations Funds, Invus, and Founder and Chairman, Mir Imran. The anticipated net proceeds from the PIPE, together with the initial upfront payment and the expected technology transfer milestones of $18M from the agreement with Chugai, are expected to fund the Company’s operations into 2028.