AstraZeneca Inks $555-M Deal With Algen to Develop Gene Therapies

Algen Biotechnologies said Monday it has agreed to grant AstraZeneca a license to develop gene therapies discovered through Algen’s artificial intelligence-driven platform, in a deal worth up to $555 million, Raechel Thankam Job and Pushkala Aripaka reported for Reuters.

Christine Du, MBA, CBO & Co-Founder; Chun-Hao Huang, Ph.D., CEO & Co-Founder; Jeff Whitten, Ph.D., Chief Scientific Officer. (Photo: Erin Beach, Business Wire)

Under the agreement, AstraZeneca will receive exclusive rights to develop and commercialize therapies targeting immune system-related disorders. Algen will receive upfront and milestone payments tied to development progress and regulatory approvals.

AstraZeneca has been expanding its cell and gene therapy capabilities through acquisitions and partnerships, aiming for $80 billion in annual sales by 2030.

The pharma giant has increasingly turned to AI-based drug development, mirroring a global trend in the industry.

In March, AstraZeneca agreed to buy Belgian biotech EsoBiotec for up to $1 billion, gaining access to technology that modifies immune cells directly inside the body. Monday’s deal, however, does not include AstraZeneca taking an equity stake in Algen, CEO and co-founder Chun-Hao Huang told Reuters.