SAN JOSE, Calif. - Rani Therapeutics Holdings, Inc. (NASDAQ:RANI), a pioneer in oral biologics delivery, and ProGen Co., Ltd. (KONEX:296160), a South Korean biotech firm, have announced a partnership to co-develop and commercialize RT-114, an oral therapeutic for obesity. The collaboration, unveiled today, leverages Rani's RaniPill® capsule and ProGen's proprietary protein, PG-102, to potentially transform obesity treatment with a more patient-friendly oral dosage form.
RT-114 combines ProGen’s Fc Fusion protein conjugated GLP-1/GLP-2 dual agonist, PG-102, with Rani's RaniPill® capsule, aiming to offer bioavailability comparable to subcutaneous injections. The companies have agreed to a 50/50 cost and revenue share arrangement for the worldwide development and commercialization of the product.
The agreement grants Rani exclusive rights to lead development and commercialization in the United States, Europe, Canada, and Australia, while ProGen will take the helm in the rest of the world. Both companies have rights to sublicense in their respective territories. Preclinical and Phase 1 development activities are slated to begin in 2025, with Rani at the operational forefront.
Rani's CEO, Talat Imran, highlighted the potential of RT-114 to enhance patient adherence by replacing injections with a pill, citing the long half-life and unique action mechanism of PG-102. ProGen's CEO, Dr. Jong-Gyun Kim, expressed enthusiasm for the joint pursuit of a potential first-in-class oral anti-obesity therapy.
ProGen's recent presentation at the 2024 American Diabetes Association conference showcased PG-102's favorable safety profile and potential for weekly to monthly dosing. The product has demonstrated greater glycemic control and body weight loss compared to competitors in preclinical studies.
Rani Therapeutics specializes in the oral delivery of biologics and drugs, with its RaniPill® capsule technology designed to supplant injections. The company has completed three Phase 1 clinical studies using this platform. ProGen focuses on long-acting biologics for metabolic and immune-mediated diseases, leveraging its NTIG® technology for multi-targeting drugs with extended in vivo persistence.
This article is based on a press release statement from Rani Therapeutics.
In other recent news, Rani Therapeutics Holdings disclosed its financial results for the first quarter of 2024, reporting a net loss of $0.56 per share. The company's research and development expenses for the quarter were $7.6 million while selling, general, and administrative expenses amounted to $6.4 million. This financial update prompted H.C. Wainwright to increase its price target for Rani Therapeutics from $12.00 to $13.00, maintaining a Buy rating on the company's shares.
Concurrently, Canaccord Genuity revised its financial outlook for Rani Therapeutics, reducing its price target from $21.00 to $9.00. The firm's analyst noted that the adjustment was due to a shift in the clinical development timeline, specifically the U.S. launch of Rani Therapeutics' osteoporosis treatment candidate, RT-102.
Despite the revised timeline, the firm maintained a Buy rating on the company's shares, indicating its continued confidence in the potential of Rani Therapeutics' pipeline.
These are the latest developments for Rani Therapeutics, reflecting the ongoing analysis and adjustments made by analysts at H.C. Wainwright and Canaccord Genuity. While the price target adjustments reflect different perspectives, both firms maintain a positive stance on Rani Therapeutics.
InvestingPro Insights
As Rani Therapeutics Holdings, Inc. (NASDAQ:RANI) embarks on this promising partnership with ProGen Co., Ltd., investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Rani Therapeutics has a market capitalization of approximately $209.24 million and is trading at a high Price / Book multiple of 28.28. This valuation indicates that the market has high expectations for the company's asset value and future growth.
InvestingPro Tips suggest that Rani Therapeutics is quickly burning through cash and has not been profitable over the last twelve months, with an operating income of -63.62 million USD. Analysts are not anticipating the company to be profitable this year, which may be a concern for potential investors. Nevertheless, the company's liquid assets exceed its short-term obligations, showcasing a degree of financial stability that could support its research and development endeavors. Moreover, despite not paying dividends to shareholders, Rani Therapeutics has seen a significant return over the last week (8.92%) and an even stronger return over the last three months (27.3%), reflecting investor optimism about the company's prospects.
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