Merck & Co – known as MSD outside the US and Canada – has entered into a licence and research collaboration agreement worth up to $1.9bn with Mestag Therapeutics to identify new targets for inflammatory diseases.
Mestag is focused on unlocking the therapeutic potential of fibroblasts, a type of connective tissue cell that have long been known for their structural role in both health and disease.
The partnership will see the biotech use its proprietary Reversing Activated Fibroblast Technology (RAFT) platform, designed to model the pathogenic role of fibroblasts in human disease, to identify new drug targets.
Merck will have the option to obtain exclusive licences to develop and commercialise therapeutics directed against a prespecified number of potential targets identified under the collaboration, and will be responsible for the discovery, development and commercialisation of any resulting therapeutics.
In exchange, Mestag will receive an undisclosed upfront payment and access fees, and will be eligible to option fees as well as downstream payments, bringing the potential deal value to $1.9bn.
Discoveries made in recent years have shown that fibroblasts play an important role in organising and regulating immune responses in local inflammatory environments, with far-reaching and control on the key players of the immune system, including T cells, B cells, dendritic cells and macrophages.
Marc Levesque, vice president of immunology discovery, MSD Research Laboratories, said: “The role of activated fibroblasts in directing immune activity offers exciting new therapeutic potential.
“We look forward to collaborating with the team at Mestag to identify new potential therapeutic options for patients with fibrosis and inflammatory diseases.”
Also commenting on the alliance, Mestag’s chief executive officer, Susan Hill, said: “We are acutely aware of the significant unmet needs faced on a daily basis by patients suffering from inflammatory diseases. We are thrilled to collaborate with [Merck] together driving continued innovation for the benefit of patients.”
The agreement comes just days after Merck announced that it had completed its acquisition of an investigational B-cell depletion therapy from Curon Biopharmaceutical.
The candidate, CN201, is currently being evaluated in phase 1 and phase 1b/2 clinical trials for the treatment of patients with relapsed or refractory non-Hodgkin’s lymphoma and relapsed or refractory B-cell acute lymphocytic leukaemia, respectively.