Biotech Rani rockets 250% in a day on Chugai collaboration, private placement

Shares of Rani Therapeutics Holdings, a developer of a technology that turns injections into pills, soared nearly 250% on Friday, October 17. Trading volume was almost 60 times the daily average. The company delivered two announcements: a collaboration with Japan’s Chugai Pharmaceutical potentially worth $1.09 billion, and a $60.3 million private placement.

Rani shares jumped 248% to $1.64 per share on Friday. Investors traded 489 million shares – nearly 60 times the average daily volume, according to Yahoo Finance data. In morning trading today, October 20, the stock had added more than 36% as of this writing.

The rally followed two announcements made on Friday. 

First, Rani announced a collaboration and license deal with Japan's Chugai, part of the Roche Group. Under the agreement, Rani will provide its RaniPill technology, which is designed to replace injections and intravenous infusions with oral capsules. Chugai plans to use the platform to develop a therapy for a rare disease, without disclosing the indication. Rani will receive a $10 million upfront payment and up to $175 million tied to development and commercial milestones. Chugai can extend rights to five additional programs on similar terms, which would lift the total deal to $1.09 billion.

Separately, Rani said it raised $60.3 million from investors led by venture fund Samsara BioCapital. Combined with the up-front payment from Chugai, the proceeds are expected to be enough to fund operations through 2028, the company said.

Rani is developing a capsule that can deliver biologics now administered only by injection. Injections can be burdensome and reduce adherence, CEO Mir Imran said. Converting them to oral form could simplify treatment, lower the burden on patients, and improve outcomes.

The technology could be applied to obesity drugs, the company said. The market is dominated by semaglutide (Wegovy, from Novo Nordisk) and tirzepatide (Zepbound, from Eli Lilly), which are delivered only by injection, though both companies are working on oral versions.

Rani is not alone in the race. Another small company, Lexaria Bioscience, is also testing its oral delivery technology on blockbuster drugs from Novo Nordisk and Eli Lilly.

The AI translation of this story was reviewed by a human editor.