City Therapeutics entered into a strategic collaboration with Bausch + Lomb focused on the development of a novel therapy for the treatment of retinal diseases including geographic atrophy, the company announced in a press release. 

Through the collaboration, City Therapeutics said it will leverage its next-generation RNAi engineering technologies to develop a novel RNAi clinical candidate toward a specific disease target for intravitreal administration. If Bausch + Lomb elects to pursue the candidate for further development, it will be responsible for IND-enabling studies and clinical development, as well as regulatory submissions and commercialization activities, the press release stated. City Therapeutics said it retains all technology and product rights, except where Bausch + Lomb exercises its right to exclusively license a candidate for ocular indications.

Under the terms of the collaboration, City Therapeutics has received an upfront cash payment and, if Bausch + Lomb elects to pursue a candidate for further development, City Therapeutics is also eligible to receive contingent payments tied to development, regulatory, commercial and sales milestones of up to $485 million, as well as tiered royalty payments on net product sales. In connection with the collaboration, City Therapeutics said it also issued a convertible note to Bausch + Lomb, representing a minority equity interest in the company if converted.