RICHMOND, Calif. - BioAge Labs, Inc. (BIOA), a biopharmaceutical company focused on developing therapies for metabolic diseases by targeting human aging biology, has entered into a research collaboration with pharmaceutical giant Novartis (SIX:NOVN). The clinical-stage company, currently valued at $147 million, maintains a strong liquidity position with a current ratio of 17.63x. The multi-year partnership announced today is set to identify and validate new therapeutic drug targets by exploring the biology behind diseases associated with aging and the positive effects of physical exercise.
Under the terms of the agreement, BioAge will receive up to $20 million in upfront payments and research funding. Additionally, the company may earn up to $530 million in future long-term research, development, and commercial milestones. According to InvestingPro data, this deal comes at a crucial time as the company's stock has declined over 77% in the past six months, though it maintains more cash than debt on its balance sheet. Unlock 12 more exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription. Novartis and BioAge will each have the option to further develop discovered targets, with potential for reciprocal milestones and tiered royalties.
The collaboration combines BioAge’s proprietary human longevity datasets, which include up to 50 years of longitudinal aging cohort data, with Novartis’ expertise in the biology of physical exercise. This partnership aims to generate novel treatment options for aging-related diseases by leveraging advanced analytics and machine learning to identify key healthspan determinants.
Kristen Fortney, CEO and co-founder of BioAge, highlighted the significance of their platform in identifying therapeutic pathways that could improve health outcomes. Michaela Kneissel, Global Head of Diseases of Aging and Regenerative medicine at Novartis, expressed excitement about the potential of combining their scientific expertise with BioAge's data to discover new therapeutic targets.
BioAge's lead product candidate, azelaprag, is an orally available small molecule that has shown promising results in metabolism promotion and muscle atrophy prevention. The company is also developing NLRP3 inhibitors aimed at treating neuroinflammation-driven diseases.
The partnership reflects a growing recognition of aging biology as a critical area in disease treatment. Peng Leong, CBO and Head of Brain Aging at BioAge, sees this collaboration as a major opportunity to accelerate the development of therapies targeting novel mechanisms identified by their platform.
This news is based on a press release statement from BioAge Labs, Inc. While analysts have set price targets ranging from $5 to $7 per share, InvestingPro subscribers gain access to detailed Fair Value analysis, comprehensive financial health scores, and expert insights to make more informed investment decisions.
In other recent news, BioAge Labs has experienced several significant developments. The company faced a series of stock downgrades from Morgan Stanley (NYSE:MS), Citi, and Jefferies, following the discontinuation of its Phase 2 STRIDES study on obesity drug azelaprag due to potential liver issues observed in some participants. Despite the trial's halt, BioAge Labs maintains a strong financial health score, indicating robust liquidity and more cash than debt on its balance sheet.
The company is now focusing on the development of an oral NLRP3 inhibitor targeting neuroinflammation, with more details to be revealed in 2025 and an Investigational New Drug submission planned for the same year. However, initial clinical data from this program is not anticipated until 2026.
While the future of azelaprag remains uncertain, the company's NLRP3 program and the potential advancement of backup apelin receptor agonists are viewed as positive factors for BioAge Labs' long-term prospects. These recent developments underscore the importance of staying informed on BioAge Labs' ongoing research and development efforts.
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