Moderna has backed out of its gene editing deal with Metagenomi, handing back full global rights to the primary hyperoxaluria type 1 program and other related technologies, including base editors and RNA-mediated integration systems.
Metagenomi in Wednesday’s announcement said that the partners have “mutually agreed” to terminate the agreement, but that the decision came after a “strategic prioritization” by Moderna. However, the mRNA-focused biopharma company will remain a shareholder of Metagenomi.
Despite losing a powerhouse partner, Metagenomi CEO Brian Thomas said in a statement that the biotech is “pleased to regain full control of the development of base editing technology” and its RNA-mediated integration systems (RIGS), which will allow the company to harness these platforms to develop treatments in “areas of significant need, such as Alpha-1 antitrypsin deficiency and Wilson’s disease.”
Metagenomi is capable of advancing programs on its own, Thomas said, adding that the biotech has over the years built up its footprint and talent base, as well as “leveraged significant private and public funding to greatly expand our gene editing toolbox, and established in-house manufacturing.”
Moderna and Metagenomi inked the gene editing partnership in 2021, combining the former’s mRNA platform with the latter’s gene editing expertise to develop in vivo human therapies.
At the time, the partners did not disclose the specific financial details of the deal, though subsequent SEC filings showed that Metagenomi could have potentially generated more than $3 billion from the agreement, plus an upfront payment and royalties. As of December 31, 2023, the biotech had secured $49.6 million from the partnership.
In February 2024, Metagenomi debuted on the Nasdaq Global Select Market with a nearly $94 million initial public offering (IPO). The biotech’s shares cratered 31% the following day, highlighting the problems faced by earlier-stage companies that go public.
Some of the market’s apprehension over Metagenomi’s IPO could be attributed to the fact that it has no candidates in the clinic. Instead, the biotech has focused on creating what it brands as “the most diverse genome editing toolbox” to target various genetic conditions.
For Moderna, the discontinuation of the Metagenomi partnership comes after it suffered more than $1 billion in losses and write-downs linked to low demand for its vaccine and cancelled orders for Africa. The company has in turn suspended the construction of an mRNA manufacturing facility in Kenya while it assesses the demand for its vaccines.
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