Vertex Pharmaceuticals Inc. is collaborating with private biotech company Ribometrix Inc. to discover and develop novel treatments for serious diseases in a deal that will pay $20 million up front, including an equity investment.
Under the collaboration, the companies plan to work on up to three drug discovery programs, including one that Ribometrix has already begun.
The companies will start with two programs, and Boston-based Vertex will have the option to add the third. Vertex will have the rights to get an exclusive global license for the development and commercialization of molecules identified in that program.
According to the terms of the deal, Ribometrix is eligible to receive more than $700 million in total potential payments. Additionally, Ribometrix is entitled to royalties on future net global sales on any products developed under the collaboration.
Vertex, which develops and commercializes treatments for cystic fibrosis — a genetic disease that affects the lungs and digestive system — said in September that it is acquiring privately held Semma Therapeutics Inc. for $950 million in cash. The biotechnology giant had cash and cash equivalents of $3.29 billion as of June 30.
Durham, N.C.-based Ribometrix discovers and develops therapies targeting RNA to treat diseases, a field that has seen a number of collaborations in the last year. The private company is backed by the venture capital arms of several industry heavyweights including AbbVie Inc., Amgen Inc. and Merck KGaA.
