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Eli Lilly and Co (LLY): Expands Genetic Hearing Loss Pipeline with $1.3B RNA Therapy Partnership

Abdul Rahman

1 min read

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On May 16, Eli Lilly and Company (NYSE:LLY) announced a partnership with Rznomics to develop RNA-based gene therapies for sensorineural hearing loss, with milestone payments exceeding $1.3 billion. Rznomics will lead early-stage research, while Lilly handles clinical development and commercialization using RNA editing, a reversible alternative to CRISPR.

Eli Lilly and Co (NYSE:LLY): A Good Healthcare Stock on Strong Mounjaro and Zepbound Uptake

Eli Lilly and Co (NYSE:LLY): A Good Healthcare Stock on Strong Mounjaro and Zepbound Uptake

A healthcare professional working on a computer terminal with a patient in the background.

The collaboration complements Lilly's existing genetic hearing loss pipeline, including AK-OTOF, a Phase I/II AAV gene therapy targeting OTOF gene mutations. Early data showed hearing restoration in a trial participant within 30 days. Eli Lilly and Company (NYSE:LLY) also signed a $1.4 billion deal with Sangamo Therapeutics for CNS gene therapy in April 2025.

Industry focus on genetic hearing loss treatments is growing, with Regeneron's DB-OTO showing measurable hearing improvements in 10 of 11 pediatric patients. Rznomics, which raised $58 million in funding, sees the partnership as a step toward global biotech expansion. CEO Seong-Wook Lee emphasized the potential of precision RNA therapeutics in treating previously untreatable diseases.

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Disclosure: None.