lncRNAs are a class of therapeutic targets that play a critical role in disease by recruiting RNA-binding proteins (RBPs).
The companies will focus on advancing two oncology programmes under this deal.
The first is an lncRNA-targeting small molecule programme currently underway at NextRNA and is presently in the early preclinical development stage.
For the second programme, NextRNA will continue to identify lncRNA targets, with Bayer having the option to choose one for joint development.
As per the deal, Bayer will obtain access to the platform of NextRNA, which combines its computational engine NextMap with lncRNA biology expertise and a varied set of biophysics, biochemical and chemistry capabilities.
This differentiated approach aims to inhibit lncRNA functions by disrupting their interactions with RBPs, the company noted.
Bayer Pharmaceuticals Division Business Development and Licensing head Juergen Eckhardt said: “With NextRNA’s exceptional expertise and lncRNA platform, we aim to advance novel small molecule therapeutics against a new class of targets in oncology.
“This partnership further adds to our mission to build one of the most transformative and diversified oncology pipelines in the industry.”
NextRNA stands to receive up to $547m for the two programmes. This payment comprises upfront and near-term milestone fees, funding for research, and payments on meeting development and commercial milestones.
Additionally, tiered royalty payments on net product sales will be paid to NextRNA.
NextRNA co-founder and CEO Dominique Verhelle said: “This collaboration recognises lncRNAs as an exciting target class and confirms NextRNA’s position as both a leader in this space and a partner-of-choice for companies seeking to develop transformative small molecule therapeutics across disease areas.
“We look forward to working closely with the Bayer team to advance first-in-class cancer therapies while continuing to build our pipeline in oncology and neuroscience.”