Recursion Pharmaceuticals acquires full rights to hypophosphatasia drug REV102

Recursion (RXRX) acquired Rallybio’s (RLYB) full interest in their joint ENPP1 inhibitor program, REV102, and an associated backup molecule for the treatment of hypophosphatasia, or HPP, a rare and debilitating genetic disorder. The REV102 program targets ectonucleotide pyrophosphatase/phosphodiesterase 1 or ENPP1, an enzyme implicated in the pathogenesis of HPP. The mechanism of action involves a potent, highly selective inhibition of ENPP1, aiming to restore the crucial balance of inorganic pyrophosphate necessary for proper bone mineralization, thereby addressing the underlying cause of HPP. HPP is a devastating genetic disorder affecting over 7,800 diagnosed patients across the US and EU5, many of whom have limited access to current Enzyme Replacement Therapies. REV102 is currently in IND-enabling studies, with the initiation of Phase 1 clinical trials expected in 2H26. Rallybio is eligible to receive certain payments, including $7.5M in upfront equity, a contingent equity payment of $12.5M upon the initiation of additional preclinical studies, and a $5M milestone payment in connection with the initiation of dosing in a Phase 1 clinical study. Rallybio is also eligible to receive low single-digit royalties on all 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.