Lodo Therapeutics Corp. (New York, N.Y.) and the Genentech Inc. unit of Roche (SIX:ROG; OTCQB:RHHBY) partnered to discover compounds with Lodo's Metagenomics Technology Platform against multiple undisclosed targets chosen by Genentech. The collaboration could potentially cover multiple diseases, including infectious diseases and cancer, according to Genentech Director of Research Tools & Technologies Business Development Mark Rowen.
Under the deal, Lodo will receive an undisclosed upfront payment and is eligible for R&D and commercialization milestones up to $969 million, plus tiered royalties on sales. Genentech will have worldwide rights to therapies developed under the collaboration, according to Lodo co-founder and CSO David Pompliano.
The Metagenomics Technology Platform integrates genome mining and biosynthetic cluster assembly to identify molecules with therapeutic potential based on microbial DNA sequences from soil.
Genentech does not have any microbiome or microbial-derived therapies in its pipeline, but it and Roche have partnered with other companies to expand their chemical library with natural products, like those derived from microorganisms, Rowen said.
Lodo, which has rights to the platform from The Rockefeller University, is developing therapies to treat cancer and drug-resistant microbial infections. Lodo expects its first proprietary compound to enter the clinic by mid-2020, Pompliano said.
Accelerator Life Science Partners (Seattle, Wash.) launched Lodo in 2016 with a $17 million series A round led by Accelerator (see BioCentury Extra, Jan. 11, 2016).