Biogen has struck a backloaded, $1 billion deal to buy RayThera, snagging a pipeline of anti-inflammatory drug candidates led by a prospect on the cusp of clinical development.
RayThera raised a $110 million series A round last year to advance small molecules through preclinical development in immunology indications. Details of the company’s activities are scarce, with its public pipeline listing three assets that hit undisclosed targets to treat undisclosed anti-inflammatory diseases. The candidates are in lead optimization and preclinical development, according to the pipeline.
Biogen has yet to break down the deal terms, saying only that the $1 billion includes an upfront fee but is predominantly made up of paydays tied to clinical and regulatory milestones. The big biotech expects RayThera’s lead candidate to enter the clinic early in the third quarter.
BMO Capital Markets analysts found RayThera patents covering TNF modulators, CCR4 inhibitors and STAT6 modulators. The patents “may provide some line of sight to potential targets being pursued,” the analysts said in a note to investors. Sanofi is among the companies to target STAT6. Rapt Therapeutics axed a CCR4 inhibitor in 2024 after the FDA put its midphase trial on hold.
RayThera’s programs will add to “Biogen’s already robust immunology pipeline,” the analysts said. The pipeline reflects the open innovation model that Nick Wilson, Ph.D., head of immunology research at Biogen, recently said the company has adopted to establish its next generation of treatments.
The buyout is another quick win for Qing Dong and Gene Hung, M.D., who cofounded RayThera in 2023 and led the company as CEO and chief scientific officer, respectively. Dong and Hung cofounded XinThera in 2021 and sold the business to Gilead for $200 million upfront in 2023. RayThera is Dong’s third exit, with the executive also founding FronThera in 2015 and helping it to a takeover by Alumis in 2021.
Dong and Hung got the XinThera team back together to power RayThera toward the clinic. Kyle Fraher, Mary Gieson and Jing Liu, all of whom worked at XinThera, held vice president or higher roles at RayThera.
