Sept. 20 Quick Takes: Orionis, Genentech in molecular glue deal

For Orionis Biosciences Inc.’s second deal with a pharma, the biotech is teaming with the Genentech Inc. unit of Roche (SIX:ROG; OTCQX:RHHBY) to develop molecular glue therapies. For $47 million up front, Orionis will discover and optimize molecular glues against an undisclosed set of targets selected by Genentech; the biotech is eligible for more than $2 billion in milestones, plus royalties. Orionis emerged from stealth mode in 2020 as it announced a deal with Novartis AG (SIX:NOVN; NYSE:NVS). The company has mapped more than 150 million molecular glue interactions using its “Allo-Glue” cell-based protein interaction screening platform.

Roche is the latest pharma to enter the radiopharmaceuticals space via a deal between its Genentech unit and PeptiDream Inc. (Tokyo:4587). The Japanese biotech will use its peptide discovery platform to discover and develop macrocyclic peptide-radioisotope drug conjugates against targets nominated by Genentech. PeptiDream, which first partnered with Genentech in 2015, will receive $40 million up front and is eligible for up to $1 billion in development, regulatory and commercial milestones, plus tiered royalties. PeptiDream will also retain rights to commercialize the products in Japan, while Genentech will have ex-Japan rights. PeptiDream did a similar deal with RayzeBio Inc. (NASDAQ:RYZB) in 2020 that granted the biotech rights to peptide-based radiopharmaceuticals and resulted in PeptiDream being one of the largest shareholders ahead of RayzeBio’s IPO last week...