Recursion Pharmaceuticals Inc (NASDAQ:RXRX) stock surged 11.5% while Rallybio Corp (NASDAQ:RLYB) shares jumped 35% Monday after Recursion acquired full rights to REV102, an oral ENPP1 inhibitor for treating hypophosphatasia (HPP), from Rallybio.
The acquisition includes an associated backup molecule for the rare genetic disorder treatment program. REV102 is designed to potentially become the first oral disease-modifying therapy for HPP, a rare and debilitating genetic disorder affecting over 7,800 diagnosed patients across the US and EU5.
Under the agreement terms, Rallybio is eligible to receive $7.5 million in upfront equity, a contingent equity payment of $12.5 million upon initiation of additional preclinical studies, and a $5 million milestone payment when dosing begins in a Phase 1 clinical study. Rallybio will also receive low single-digit royalties on future net sales.
“Having full ownership of this important program allows Recursion to accelerate the development of the first potential oral disease-modifying treatment to HPP patients, who currently face significant challenges with limited access to existing therapies,” said David Hallett, Chief Scientific Officer of Recursion.
The REV102 program targets the ENPP1 enzyme implicated in HPP pathogenesis. The treatment works by inhibiting ENPP1 to restore the balance of inorganic pyrophosphate necessary for proper bone mineralization.
Currently in IND-enabling studies, REV102 is expected to enter Phase 1 clinical trials in the second half of 2026. Early preclinical data has shown a favorable safety profile in animal models and validated ENPP1 as a druggable target in later-onset HPP.
