ADVERTISEMENT

Company News

Roche Bets Up to $1 Billion to Solve Gene Therapy’s Big Problem

A technician demonstrates the process of transferring cell samples into a vial at the Gracell Biotechnology Ltd. research laboratory in Shanghai, China, on Tuesday, Oct. 29, 2019. Chinese startup Gracell is trialing Chimeric Antigen Receptor-T cells, known as CAR-T, and the gene therapy is being hailed as one of the most exciting developments in the quest to cure cancer. CAR-T re-works the genes of the body's own immune cells so that they actively seek out and destroy cancer cells. While it’s been embraced by researchers and drugmakers around the world, perhaps nowhere is CAR-T having more impact than in China, home to the world's biggest cancer population and some of the most ambitious experiments. Photographer: Qilai Shen/Bloomberg (Qilai Shen/Bloomberg)

(Bloomberg) -- Roche Holding AG is willing to pay more than $1 billion to solve one of the biggest challenges of gene therapy: delivery.

The Swiss drugmaker has reached a new deal with Dyno Therapeutics Inc., a biotech focused on helping companies ensure that their gene therapies hit their intended targets, the companies said Thursday. 

Gene therapies are one-time treatments that fix misspellings in DNA to address the underlying cause of inherited diseases. Biotech companies typically deliver them by inserting a working copy of a gene inside the shell of an inactive virus, called a capsid. The shell is supposed to carry the gene to the correct cells in the body so it can replace the mutated gene. 

But gene therapies have a hard time reaching certain areas of the body, limiting their potential. And they often miss their targets, forcing companies to use higher doses that can be toxic and cause the immune system to reject it. That also increases costs and contributes to the multi-million-dollar price tags of some treatments. 

The collaboration builds on a previous agreement between the companies, giving Roche more access to Dyno’s technology. Under the new deal, Roche will pay $50 million upfront to Dyno, which will use artificial intelligence to design better vehicles for delivering gene therapies to potentially cure neurological diseases. Roche will pay more than $1 billion in milestone and royalty payments if the treatments advance through clinical trials and succeed commercially.

Dyno’s technology can ensure that gene therapies reach the correct cells and avoid other organs in the body, said Eric Kelsic, Dyno’s chief executive officer. The company has engineered capsids that are better at crossing the blood-brain barrier, which is crucial for treating neurological diseases. Because of prior exposure to viruses, many patients develop antibodies to the capsids used to deliver gene therapy, meaning they often won’t benefit from the treatment. Dyno is engineering ways to avoid this.While some drugmakers have scaled back their ambitions in gene therapy, Roche is still pursuing the cutting-edge science. But it has faced challenges. In July, the company discontinued development of a gene therapy for Pompe disease, a rare disorder that causes weakness to the heart and skeletal muscles. 

In 2019, Roche agreed to pay $4.8 billion for Spark Therapeutics, maker of treatments for inherited vision loss and other disorders. But by 2022, the Swiss drugmaker had written down more than $1 billion of the acquisition’s value, citing falling sales expectations for Spark’s approved and experimental products.

With Dyno, Roche is hoping to create gene therapies that can be an answer to “historically difficult-to-treat neurological diseases,” said Boris L. Zaïtra, Roche’s head of corporate business development. That could open the door to potential cures for conditions like Alzheimer’s disease, Kelsic said.

Dyno doesn’t make its own gene therapies. Instead, it has decided to focus on helping other companies improve the delivery of their treatments. Besides Roche, Dyno is also working with Sarepta Therapeutics Inc., which sells a gene therapy for Duchenne muscular dystrophy, and Astellas Pharma Inc.

“Solving delivery is the grand challenge for the field,” Kelsic said. “When we solve delivery, it will make even better therapies relevant for more diseases and more patients.”

©2024 Bloomberg L.P.