Aug 28 (Reuters) -

Replicate Bioscience will partner with Novo Nordisk

to develop treatments using self-replicating RNA

technology for obesity, type 2 diabetes and other

cardiometabolic diseases, the privately held biotech company

said on Thursday.

As part of the deal, Danish drugmaker Novo will get an

exclusive, worldwide license to use Replicate's proprietary

srRNA platform for developing the treatments.

Replicate will receive research funding and up to $550

million from Novo Nordisk, including potential milestone

payments. It is also eligible for tiered royalties on future

product sales.

The partnership comes as concerns of Novo losing its

first-mover advantage in the obesity drug market to American

rival Eli Lilly ( LLY ) rise.

Novo also expects more competition from copycat versions of

its blockbuster Wegovy obesity drug this year, it said earlier

this month.

The San Diego-based Replicate's srRNA technology

"enables patients' cells to naturally generate their own

therapeutic proteins," said Rachael Lester, chief business

officer.

The technology triggers stronger immune responses and

has improved safety compared with current RNA drugs, the company

said.

Replicate is also testing a vaccine for rabies and

therapies for lung and breast cancer, among other experimental

treatments.

Last year, Eli Lilly ( LLY ) had partnered with Swiss biotech Haya

Therapeutics to develop RNA-based drugs for obesity.