Chugai partners with Rani for biologic delivery, potential payments exceeding $1bn

Chugai Pharmaceutical will pay Rani Therapeutics an upfront fee of $10 million. The agreement includes potential milestone payments of up to $75 million for technology transfer and development, and up to $100 million based on commercial success. Chugai will also pay single-digit royalties on product sales if launched.

Beyond the initial agreement, Chugai has secured option rights for up to five additional target molecules under similar terms. If Chugai exercises all options, total payments could exceed $1 billion. This collaboration leverages Chugai's antibody engineering expertise with Rani's RaniPill® oral delivery platform, which aims to convert biologic injections into oral doses.

This partnership, announced on October 20, 2025, is not expected to impact Chugai Pharmaceutical's consolidated earnings forecast for the fiscal year ending December 2025.