Eli Lilly strikes $1.3bn gene remedy cope with Rznomics

The 2 firms will co-develop precision RNA therapeutics for inherited listening to loss therapy. Credit score: Scott Olson/Getty Pictures Information through Getty Pictures.

Eli Lilly is strengthening its place in genetic medication for listening to loss by means of a brand new collaboration with South Korea-based biotech Rznomics.

The settlement, centred on the event of RNA-based gene therapies for sensorineural listening to loss, carries a possible worth exceeding $1.3bn in milestone funds. Rznomics disclosed the deal on 15 Might, although monetary particulars of the upfront cost weren’t shared.

Below the phrases of the partnership, Rznomics will apply its proprietary trans-splicing ribozyme RNA platform to develop RNA-editing therapies. The corporate will lead early-stage analysis, whereas Eli Lilly will take over preclinical development, scientific growth, and commercialisation efforts.

This strategy is completely different to DNA enhancing approaches like CRISPR—clustered commonly interspaced brief palindromic repeats (CRISPR)—which make everlasting modifications to the genome. RNA enhancing is a reversible course of that permits for focused corrections with out altering the underlying genetic code.

This collaboration enhances Lilly’s current pipeline in genetic listening to loss therapies, which incorporates AK-OTOF, a twin adeno-associated virus (AAV) vector-based gene remedy at the moment in a Section I/II scientific trial (NCT05821959). Developed by Lilly’s subsidiary Akouos, AK-OTOF targets listening to loss attributable to mutations within the otoferlin (OTOF) gene.

In January 2024, early information from the trial confirmed {that a} single administration of AK-OTOF restored listening to in an 11-year-old participant inside 30 days. The affected person skilled improved listening to throughout a number of frequencies, with no critical opposed occasions reported.

AK-OTOF is run by means of a unilateral intracochlear injection and is designed to ship purposeful OTOF transgenes to the inside hair cells of the cochlea. The remedy is a part of Lilly’s broader push into gene remedy. In April 2025, Lilly inked a deal value $1.4bn with Sangamo Therapeutics to develop a gene remedy for a central nervous system illness.

The collaboration with Rznomics comes amid rising trade concentrate on genetic therapies for listening to loss. Regeneron can also be pursuing an identical strategy with DB-OTO, a twin AAV gene remedy candidate at the moment in a Section I/II scientific trial (NCT05788536). In accordance with information shared in February, 10 of 11 paediatric sufferers handled with DB-OTO confirmed measurable listening to enhancements, with some reaching near-normal thresholds.

Rznomics raised KRW 20.3 bn ($16.5m) in pre-IPO funding in January, bringing its complete raised capital to round $58m. The corporate mentioned the partnership with Lilly is a part of its technique to “broaden its presence within the world biotech area,” within the 15 Might announcement.

“This partnership validates our trans-splicing ribozyme platform and opens the door to treating beforehand intractable ailments with precision RNA therapeutics,” added Seong-Wook Lee, CEO of Rznomics.