Formation Bio Acquires Rights to Innovative Autoimmune Treatment from CTFH

Formation Bio Licenses Innovative miR-124 Activator from CTFH

Formation Bio, in collaboration with Jiangsu Chia Tai Feng Hai Pharmaceutical Co., LTD. (CTFH), is making waves in the biopharmaceutical industry with its latest acquisition. This acquisition involves the global rights, excluding Greater China, to an oral small-molecule drug known as FHND5032, which is an activator of miR-124, aimed at treating autoimmune diseases. The announcement, made on January 29, 2026, sets the stage for significant advancements in autoimmune disease treatment, an area currently facing substantial unmet medical needs.

The new asset will be welcomed into Formation Bio's subsidiary, Kenmare Bio, which has been specifically created to facilitate the development of promising treatments. FHND5032 is designed to boost the levels of miR-124, a microRNA that plays a crucial anti-inflammatory role. In many inflammatory conditions, the levels of this microRNA are diminished. By enhancing its activity, FHND5032 targets the immune system's inflammatory drivers, thereby offering the potential for lasting control over chronic autoimmune ailments. This oral formulation could provide patients with a more manageable alternative for long-term disease control, making the treatment process more convenient and effective.

David Steinberg, Formation Bio's Chief Business Officer, expressed his enthusiasm about the acquisition, stating, "FHND5032 is exactly the type of high-potential program we built Formation Bio to accelerate." With previously acquired clinical data from Phase 3 trials concerning Inflammatory Bowel Disease (IBD), the mechanism behind miR-124 has already been validated, showcasing its broad potential across various chronic inflammatory disorders. This opens up exciting opportunities to provide a distinct treatment modality for patients who historically have lacked successful therapeutic options.

In addition, Formation Bio is leveraging its proprietary AI-driven platform known as Forge to expedite the development of FHND5032 for diverse autoimmune indications. This technology analyzes existing data and regulatory frameworks, ensuring the most informed approach when selecting indications and identifying biomarkers. Benjamine Liu, co-founder and CEO of Formation Bio, highlighted the challenges faced by autoimmune patients, explaining, "FHND5032 offers a promising new approach by addressing multiple pathophysiological pathways driving autoimmune disease." Through AI-enabled trial designs, the company aims to optimize the drug's development potential across various autoimmune conditions.

CTFH's Junyi Wang, Head of Global Business Development, stated their excitement for this collaboration, adding that FHND5032 is characterized by a robust preclinical profile and has substantial translational rationale. The partnership highlights Formation's advanced capabilities in U.S.-based clinical development and AI tools, ideal for realizing the full potential of this innovative treatment for a global patient population.

As part of the terms of the agreement, CTFH will receive a minority equity stake in Kenmare Bio, which is a strategic move reflecting the mutual commitment to further research and development. The partnership also includes an upfront payment along with additional development, regulatory, and commercial milestone payments, totaling up to $500 million, plus royalties on future sales. This deal is one of many steps in Formation Bio's strategy to develop its growing pipeline, further emphasizing its commitment to innovate in the field of healthcare.

Formation Bio is pioneering in the biopharmaceutical industry, adopting a unique approach guided by a commitment to efficiency in drug development. The company integrates cutting-edge technology and AI capabilities throughout its processes to ensure that new drugs are brought to market swiftly and effectively. By forging partnerships with other pharmaceutical entities, Formation Bio is positioning itself as a leader in transforming how drugs reach the patients who need them the most, making significant strides in addressing healthcare needs.

In summary, the acquisition of FHND5032 from CTFH marks a milestone for Formation Bio as it expands its ambitious portfolio in the biopharma landscape. With a focus on autoimmune diseases, the company looks poised to transform treatment pathways and improve patient quality of life through innovative, AI-enhanced drug development processes.