Rani Therapeutics, Chugai Pharmaceutical Partner For Oral Product Development, Stock Surges

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(RTTNews) - Rani Therapeutics Holdings, Inc. (RANI), Friday announced a Collaboration and License Agreement with Chugai Pharmaceutical Co., Ltd. for the development and commercialization of an oral product, comprising of Rani's oral delivery technology, and Chugai's rare disease antibody in development.

As per the terms of the deal, Rani will receive an upfront payment of $10 million, and is eligible to receive up to $75 million contingent upon the achievement of success-based technology transfer and development milestones, up to $100 million in a series of sales-based milestones, and single digit royalties on sales upon successful commercialization of the product.

Additionally, 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 $1.085 billion.

Concurrently, Rani has entered into a securities purchase agreement for a private placement in public equity financing with total gross proceeds of approximately $60.3 million.

The gross proceeds, along with the initial upfront payment and the expected technology transfer milestones of $18 million, are expected to fund the company's operations into 2028.

Currently, Rani's stock is surging 170.75 percent, to $1.24 on the Nasdaq.