Why Is Rani Therapeutics’ Stock Skyrocketing Pre-Market Today?

Rani Therapeutics Holdings Inc. (RANI) on Friday announced that it has entered into a strategic collaboration with Chugai Pharmaceutical Co., aiming to advance the development of an oral therapeutic using its proprietary RaniPill technology. 

Chugai will work with Rani to create and commercialize a new oral product based on an experimental antibody for rare diseases. Under the deal, Rani will receive $10 million upfront.

Beyond the upfront payment, Rani may earn up to $75 million in development-related milestones, another $100 million based on commercial achievements, and single-digit royalties on sales once the product reaches the market. The agreement grants Chugai an initial license for one drug target, with the possibility of expanding to five more. The total potential payments could reach $1.085 billion if all options are exercised.

Following the announcement, Rani Therapeutics' stock traded over 165% higher in Friday’s premarket. On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘low’ levels in 24 hours. 

By partnering with Chugai, the company gains access to a promising rare disease pipeline while reinforcing its financial position. 

 “There are many cases where oral therapies for the treatment of multiple disease areas with high unmet medical needs, including rare and immunologic diseases, are limited and as a result, patients rely primarily on injections that can be burdensome and impact adherence,” said Rani CEO, Talat Imran.  

In a parallel move, Rani announced a private placement financing expected to generate about $60.3 million in gross proceeds.

Rani Therapeutics’ stock has lost over 65% in 2025 and over 82% in the past 12 months. 

Also See: Stellantis Stock Edges Up Premarket: Legacy Auto Giant Joins Hands With China's Pony AI To Power Self-Driving Vans In Europe

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