FILE PHOTO: Test tubes are seen in front of a displayed AstraZeneca logo in this illustration taken, May 21, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Algen Biotechnologies said on Monday it had agreed to grant AstraZeneca 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 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 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 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 buying a stake in the company, Algen CEO and co-founder Chun-Hao Huang told Reuters in an interview.
"Together with AstraZeneca's 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.
(Reporting by Raechel Thankam Job and Pushkala Aripaka in Bengaluru; Editing by Leroy Leo and Maju Samuel)
