Oct 6 (Reuters) - Algen Biotechnologies said on Monday

it had agreed to grant AstraZeneca ( AZN ) a license to develop

therapies the U.S.-based biotech discover using its AI-driven

gene-editing platform, in a deal worth up to $555 million.

AstraZeneca ( AZN ) will get exclusive rights to develop and sell

approved therapies, if any, that target immune system-related

disorders in exchange for upfront and milestone payments to

Algen.

AstraZeneca ( AZN ) has been advancing its cell and gene therapy

capabilities through acquisitions and partnerships as it works

towards its target of $80 billion in sales by 2030. Globally

too, drugmakers are increasingly turning to artificial

intelligence for drug development.

The Anglo-Swedish drugmaker's respiratory and immunology

portfolio generated $4.23 billion in sales, or around 15% of its

total revenue, in the first half of 2025.

AstraZeneca ( AZN ) in March 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 ( AZN ) buying

a stake in the company, Algen CEO and co-founder Chun-Hao Huang

told Reuters in an interview.

"Together with AstraZeneca's ( AZN ) deep expertise in translational

science and clinical development, we aim to uncover new

biological insights to accelerate the development of novel

therapies," Huang said.

The company, backed by investors including Viking Global and

Illumina, has raised $11 million in funding previously and is

"well capitalized", Huang said, adding that the firm would

consider scaling its programs at the next fundraise, without

giving details.

Algen was spun out from the UC Berkeley lab where biochemist

Jennifer Doudna pioneered the CRISPR technology that won her the

Nobel Prize.

The biotech firm's AI platform, AlgenBrain, can map genes to

disease outcomes, helping the companies decide their development

focus for targeted therapies.

The Financial Times had first reported the news.