Rallybio Corporation ( RLYB ) agreed on Tuesday to sell its interest in REV102, an ENPP1 inhibitor in preclinical development for hypophosphatasia (HPP), to joint venture partner Recursion Pharmaceuticals Inc. ( RXRX ) .

The deal consideration of up to $25 million includes an upfront equity payment of $7.5 million and near-term milestones.

With the upfront payment, Rallybio ( RLYB ) expects its cash runway to extend into mid-2027.

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The REV102 program, which originated from a joint venture between Rallybio ( RLYB ) and Recursion, focused on discovering and developing novel, orally available small-molecule inhibitors of ENPP1 for treating patients with HPP.

HPP is a rare, inherited metabolic bone disease caused by a deficiency in the enzyme alkaline phosphatase (ALP).

This deficiency disrupts the mineralization of bones and teeth, leading to a range of skeletal and dental abnormalities.

The lead candidate from the joint venture, REV102, entered into IND-enabling studies in early 2025.

Under the terms of the agreement, Rallybio ( RLYB ) is eligible to receive certain payments, including $7.5 million in upfront equity, a contingent equity payment of $12.5 million upon the initiation of additional preclinical studies, and a $5 million milestone payment in connection with the initiation of dosing in a Phase 1 clinical study, as defined in the agreement.

Rallybio ( RLYB ) is also eligible to receive low single-digit royalties on all future net sales by Recursion. In addition, Rallybio ( RLYB ) may be eligible to receive certain payments in the event of Recursion’s sale of the REV102 program.

Recursion Pharmaceuticals ( RXRX ) announced a reduction in personnel and infrastructure to extend its cash runway in June.

The company announced an approximately 20% reduction in its workforce, extending its cash runway into the fourth quarter of 2027.

The Nvidia-backed biotech company expects its cash burn to be below $450 million in 2025 and under $390 million in 2026.

Price Action: At the last check on Tuesday, RLYB stock was up 36.8% at $0.47, and RXRX stock was up 0.81% at $4.97 during the premarket session.

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