Merck to Collaborate with Mestag Therapeutics in $1.9 Billion Deal to Identify Novel Targets for Inflammatory Diseases

Editor's note: this story was originally published on BioPharmInternational.com.

Mestag Therapeutics (Mestag), a Cambridge, UK-based biotech company focused on gaining new insights into fibroblast-immune interactions, announced on Oct. 8, 2024 that it has entered into a new license and collaboration agreement with Merck & Co., known as MSD outside of the United States and Canada, to identify novel targets for developing therapies against inflammatory diseases.

Under the agreement, Mestag will provide Merck options to obtain exclusive licenses to develop and commercialize therapeutics directed against a prespecified number of potential targets identified in the collaboration. In return, Mestag will receive an upfront payment and access fees and will be eligible to receive option fees and downstream payment. The deal is valued at potentially $1.9 billion.

Mestag will use its reversing activated fibroblast technology (RAFT) platform to identify novel drug targets. RAFT is a proprietary platform designed to model the pathogenic role of fibroblasts in human disease. Merck has the option to license one or more targets, up to a prespecified number. Merck is also responsible for the discovery, development, and commercialization of therapeutics resulting from the collaboration.

“Mestag was founded on … insights into fibroblast–immune biology, and as an early innovator in this area of research, we have built a robust pipeline of antibody programs and created a unique and productive target discovery platform,” said Susan Hill, PhD, chief executive officer of Mestag, in a company press release. “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.”

With insights learned from fibroblast–immune interactions (1,2), Mestag specializes in developing impactful treatments for patients with cancer and inflammatory diseases. The company is progressing a pipeline of complex first-in-class antibodies designed to direct and drive the immune system. The company’s drug development work is based on known and emerging fibroblast–immune biology knowledge to create a distinctly differentiated class of therapeutics, according to the press release.

“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,” said Marc Levesque, MD, PhD, vice-president of Immunology Discovery, MSD Research Laboratories, in the press release.

Mestag’s pipeline includes a bispecific antibody, MST-0300, which operates on a new understanding of tertiary lymphoid structures (TLS) in solid tumors and TLS’ role in driving improved patient outcomes. The pipeline also includes M402, a program for a candidate that targets a stromal checkpoint to dampen activation of specific immune cell subsets in inflammatory disease, as well as earlier programs in the discovery stage. In addition, the company is separately identifying novel targets for future therapies using its RAFT platform. In 2024, the company established a license and research collaboration with Merck to identify novel targets for inflammatory diseases.

References

1. Wong, Z. Y.; Nee, E.; Coles, M.; Buckley, C. D. Why Does Understanding the Biology of Fibroblasts in Immunity Really Matter? PLoS Biol. 2023, 21 (2), e3001954. DOI: 10.1371/journal.pbio.3001954
2. Davidson, S.; Coles, M.; Thomas, T.; et al. Fibroblasts as Immune Regulators in Infection, Inflammation and Cancer. Nat. Rev. Immunol. 2021, 21, 704–717. DOI: 10.1038/s41577-021-00540-z

Source: Mestag Therapeutics