Formation Bio, an AI-native pharma company, and Chinese pharmaceutical company Jiangsu Chia Tai Feng Hai Pharmaceutical Co Ltd (CTFH) announced on Thursday that Formation Bio has acquired worldwide rights, excluding Greater China, to FHND5032 from CTFH.

FHND5032 is an oral, small-molecule miR-124 activator being developed for the treatment of autoimmune diseases. The asset will be accommodated within Formation's new subsidiary Kenmare Bio, with plans to enter the clinic in 2026.

FHND5032 is designed to activate miR-124, an anti-inflammatory microRNA whose levels are reduced in multiple inflammatory diseases. By activating miR-124 it targets key immune drivers of inflammation, with the potential to provide durable control of chronic autoimmune diseases, an area of substantial unmet medical need. Its oral formulation may offer patients a more convenient approach to long-term disease management.

Formation Bio is using its proprietary AI-driven clinical development platform, Forge, to accelerate and optimise the development of FHND5032 in a range of autoimmune diseases.

Under the agreement CTFH will receive a minority equity stake in Kenmare Bio, plus an upfront payment and development, regulatory, and commercial milestones totalling up to USD500m, as well as royalties on potential future sales.