The deal, valued at up to $25m, includes an upfront equity payment of $7.5m and near-term milestones, extending Rallybio’s cash runway into mid-2027.
The REV102 programme originated from a joint venture between Rallybio and Recursion, aimed at discovering and developing novel, orally available small molecule inhibitors of ENPP1 for HPP patients.
The lead candidate, REV102, entered IND-enabling studies in early 2025, marking a significant advancement in potential oral treatments for HPP.
Rallybio CEO Stephen Uden said, “The Rallybio team has long been committed to targeting ENPP1 to address a significant unmet need in patients with HPP. By combining Rallybio’s expertise in HPP preclinical and translational research with Recursion’s integrated AI/experimental platform, we transformed this concept into the first potential oral disease-modifying treatment for HPP.”
Dr. Uden also noted, “For Rallybio, divesting this preclinical asset enables us to extend our cash runway while sharpening our focus on strategically advancing our pipeline in ways that leverage our drug development expertise. We eagerly anticipate the release of topline data from our ongoing RLYB116 confirmatory PK/PD study this year.”
Under the agreement, Rallybio is eligible for a $7.5m upfront equity payment, a $12.5m contingent equity payment upon initiation of additional preclinical studies, and a $5m milestone payment upon Phase I dosing initiation. Rallybio will also receive low single-digit royalties on future net sales by Recursion and potential payments if Recursion sells the REV102 programme.
Recursion chief scientific officer David Hallett said: “We extend our sincere thanks to Rallybio for their invaluable partnership in advancing this programme to its current stage. Having full ownership of this important programme allows Recursion to accelerate the development of the first potential oral disease-modifying treatment to HPP patients, who currently face significant challenges with limited access to existing therapies.”