Orna, a circular RNA specialist, acquires a buzzy startup

Orna Therapeutics, a young biotechnology company focused on a flashy area of genetic research, is expanding through the acquisition of another well-funded startup.

As its name suggests, the startup, ReNAgade Therapeutics, was built around technology designed to more effectively deliver RNA-based medicines to specific parts of the body. ReNAgade launched a year ago, with $300 million in funding and an industry veteran, Amit Munshi, at its helm. The company had also created a joint venture to apply its technology to Orna’s “circular RNA” research.

Now, Orna is absorbing ReNAgade and making Munshi the CEO of the combined company.

“RNA-centric approaches are poised to eclipse traditional cell therapy-based methods and reshape the future of medicine,” Munshi said in a statement Thursday. “This strategic acquisition unifies Orna’s and ReNAgade’s strengths and capabilities under one roof, expanding technological synergies and multiplying the companies’ depth and breadth of expertise to drive a unique RNA therapeutic-focused R&D engine.”

Financial terms of the deal weren’t disclosed. Tom Barnes, Orna’s current CEO, will remain on the company’s board of directors and chair its scientific advisory board.

Thrust into the spotlight during the coronavirus pandemic, RNA-based medicines have the potential to treat a wide variety of illnesses. But this area of drug development presents certain difficulties. For example, RNA molecules are typically linear and easy to break down, which can limit their effects.

However, some of these molecules form closed-looped structures that scientists say make them more stable. Orna and another high-profile startup, Laronde, were formed to study these circular RNAs and find ways to turn them into therapies. Notably, Laronde came from Flagship Pioneering, the same biotech incubator that founded Moderna Therapeutics.

Though they attracted considerable investment, both Orna and Laronde have dealt with challenges, too. Orna turned to layoffs late last year, whereas Laronde suffered from a data integrity scandal and has since merged with another Flagship startup to form a new company, Sail Biomedicines.

The new Orna says it will continue to advance so-called panCAR medicines for cancer and autoimmune diseases. These medicines are meant to modify immune cells without the need to harvest patients’ own cells or have them undergo “lymphodepletion.”

The combined company will also advance vaccine programs partnered with Merck as well as other genetic programs.