The American pharmaceutical giant Eli Lilly (LLY.N) has consented to procure the biotech firm Orna Therapeutics for $2.4 billion in cash, thereby obtaining access to a technology that empowers patients to utilize their own cells to generate treatments internally, negating the need for extraction. The agreement was revealed on Monday and represents the most recent in a sequence of buyouts by the U.S. drug manufacturer in recent months, aimed at broadening its business beyond the weight-reduction arena. Lilly’s stock value experienced a surge of over 3% during the morning’s trading session.
Orna is pioneering therapies utilizing a specific form of RNA, termed circular RNA, in conjunction with innovative lipid nanoparticles. The primary medicinal candidate, ORN-252, is in its initial developmental stages. This constitutes a type of therapeutic intervention referred to as CAR-T (chimeric antigen receptor T cells), which targets cells exhibiting the CD19 receptor. CAR-T therapy alters the patient’s immune cells, enabling them to recognize a particular target and eliminate cancer cells.
Analogous medications are already marketed by pharmaceutical organizations, including Bristol Myers Squibb (BMY.N), Gilead (GILD.O), and Johnson & Johnson (JNJ.N), yet the majority necessitate the removal of cells, their modification within a laboratory setting, and their subsequent reinstatement into the patient’s system. In contrast, Orna endeavors to produce cells “in vivo,” meaning directly within the patient’s organism.
The Orna platform possesses the capability to augment Lilly’s capabilities in oncology and immunology, according to BMO Capital Markets analyst Evan Sagerman. Concurrently, he underscored that the technology is inherently risky and lacks validation via extensive clinical trials, while also noting significant rivalry from Bristol Myers, AbbVie (ABBV.N), and Gilead, all of whom also finalized agreements in this sector during the preceding year.
Lilly, a dominant force in the weight management medication market, is vigorously expanding into supplementary therapeutic domains, including inflammatory bowel ailments, oncology, ophthalmological conditions, and gene editing technology, through acquisitions and collaborative ventures. As an example, earlier this month it entered into an agreement with Innovent Biologics (1801.HK) of China to create medicines within the areas of immunology and oncology, with an initial payment of $350 million and a potential additional $8.5 billion contingent upon achieving predetermined benchmarks.
Source: Reuters