Verge Genomics announced a multi-target collaboration with Alexion, AstraZeneca Rare Disease ("Alexion") to identify novel drug targets for rare neurodegenerative and neuromuscular diseases. Under the terms of the four-year agreement,Verge will receive up to $42 million, consisting of upfront fee, equity, and near-term payments, with a potential deal value of $840 million plus potential downstream royalties. The collaboration, which isVerge's second with a leading global pharmaceutical company, will leverage CONVERGE??, a full-stack platform that combines highly predictive human tissue datasets with machine learning to find new targets with a higher probability of clinical success.

Instead of starting with cell or animal models,Verge's drug discovery platform is based on a proprietary library of genomic datasets derived directly from human tissue that is coupled with an advanced human-centered biology platform to rapidly advance new data insights into clinical candidates. This approach, validated through the successful advancement ofVerge's lead program in amyotrophic lateral sclerosis (ALS), will be used to identify novel therapeutic targets. Alexion will select high-potential targets for each indication, with the option to license and advance successful targets through clinical development and commercialization.

Alongside this collaboration agreement, AstraZeneca will take an equity position inVerge Genomics, building uponVerge's strong roster of strategic investors that include Eli Lilly and Merck Global Health Innovation Fund.