Biogen has handed back rights to an early Alzheimer’s disease program to Denali Therapeutics, leaving a large hole in the biotech’s collaboration revenue stream.
Biogen has terminated a license to the ATV:Abeta program, which was developed by Denali’s TfR-targeting technology for amyloid beta. The companies had been working on potential Alzheimer’s treatments.
Now, the rights will revert back to Denali, including all data generated during the collaboration, according to the biotech’s second-quarter earnings release issued Thursday.
Denali looked to put a positive spin on the news. "Today, we are also pleased to share that we have regained the rights to our TfR-based ATV:Abeta program from Biogen, thereby expanding our opportunities for addressing Alzheimer's disease with a potential best-in-class approach,” said Denali CEO Ryan Watts, Ph.D.
Denali noted that “Biogen’s decision was not related to any efficacy or safety concerns with the Transport Vehicle platform.”
But the end of the partnership represents a big loss in future profits. Denali reported a net loss of $99 million for the second quarter, compared to income of $183.4 million for the same period a year prior. That’s because Denali took home $294.1 million in collaboration revenue for the quarter last year. Of that, $293.9 million was from Biogen.
So with no money coming in from Biogen this quarter, Denali has clocked a loss in income.
A spokesperson for Denali said the program had royalties remaining in the future, but the "full financial downstream upside" is now back in the biotech's hands.
The ATV:Abeta program was licensed in April 2023 when Biogen exercised an existing option from a 2020 collaboration with Denali.
With the program back, Denali hopes to advance a TfR-targeting ATV:Abeta molecule and a CD98hc-targeting ATV:Abeta molecule into development for Alzheimer’s, according to the release.
The ATV:Abeta technology aims to increase exposure of therapeutic antibodies in the brain to improve efficacy and safety.
This is not the first time Biogen has trimmed around the edges of the Denali collaboration. The biopharma cut work on a Parkinson’s disease clinical trial for BIIB122 (DNL151) just over a year ago as the test, which focused on patients with a certain gene mutation, was not expected to have a readout until 2031. The cut was part of Biogen's R&D prioritization.
But the companies remain partnered on BIIB122, a selective LRRK2 inhibitor for Parkinson's disease, a spokesperson confirmed to Fierce Biotech in an email. A 640-patient phase 2b test is being conducted by Biogen for patients with early stage disease.