USA- Merck & Co. has invested US$150 million in RNA drug development with Orna Therapeutics which it expects would result in the development of numerous new medications and vaccines.

The New York-based American multinational pharmaceutical company, will pay Orna US$150 million upfront and contribute another $100 million to a $221 million Series B financing as part of the agreement.

The deal’s downstream payments, which could total up to $3.5 billion, as well as royalties on any approved products, would go to Orna.

Together, the two will create and market “various” programs, such as vaccinations and treatments for cancer and infectious diseases.

Orna Therapeutics, a Cambridge, MA-based biotechnology company has received other commitments from founding investors MPM Capital and BioImpact Capital, an affiliate of MPM, among others.

The company plans to use the funds to expand its lead in situ CAR (isCAR) program toward the clinic, and advance its circular RNA + LNP (lipid nanoparticle) delivery platform.

It also will develop manufacturing capabilities to support the development of an expanding preclinical and clinical pipeline.

Merck has on the other hand been bolstering its RNA capabilities since its 2006 $1.1 billion acquisition of Sirna Therapeutics, a company that made the RNA interference drugs for which Alnylam Pharmaceuticals is now famous.

Currently, Orna’s proprietary oRNA technology converts linear RNAs into circular RNAs (oRNAs) by self-circularizing.

The company has also created customized lipid nanoparticles (LNPs) that contain newly generated oRNA molecules in a more compact form.

The potential of oRNA expression and delivery as a method for further development in a number of domains, including vaccines and oncology therapies, has been shown by preclinical studies, including presentations at the 2022 American Society of Gene & Cell Therapy (ASGCT) Annual Meeting.

Merck has on the other hand been bolstering its RNA capabilities since its 2006 $1.1 billion acquisition of Sirna Therapeutics, a company that made the RNA interference drugs for which Alnylam Pharmaceuticals is now famous.

Additionally, the company has been having a long-standing relationship with Moderna, a messenger RNA pharmaceutical company that successfully created a COVID-19 vaccine.

Merck initially acquired shares in Moderna in 2015 and has subsequently collaborated with the business on a number of various research-based cancer vaccines.

Merck has made separate investments in several RNA initiatives, including Skyhawk Therapeutics, a privately held firm that uses chemical-based medications to target RNA molecules, and Translate Bio, a manufacturer of mRNA vaccines that Sanofi purchased last year.

Now Merck is focusing on a more recent technique for producing RNA drugs. Orna is one of a number of businesses, like Laronde and the covert company Circ Bio, that aim to create pharmaceuticals from artificial, “circular” RNA.

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