Mereo reaches exclusive licensing deal with AstraZeneca
Mereo Biopharma Group Ltd
€3.46
19:59 22/03/17
Clinical stage biopharmaceutical company Mereo BioPharma Group has announced that it has reached an agreement with AstraZeneca for an exclusive license - including an option to acquire - the oral inhibitor of neutrophil elastase AZD9668.
The AIM-traded firm said that under the exclusive license, it plans to conduct a Phase II study for the treatment of alpha-1 antitrypsin deficiency, a congenital orphan condition.
It added that it has the right to exercise its option to acquire AZD9668 after the initiation of pivotal studies.
“We are delighted to have closed this agreement with AstraZeneca for AZD9668 in furtherance of our stated strategy of building a portfolio of products focussed on rare and speciality diseases,” said Mereo CEO Denise Scots-Knight.
“We believe that this neutrophil elastase inhibitor has potential as an effective, orally available treatment for alpha-1 antitrypsin deficiency, an undertreated orphan condition that results in progressive lung destruction.
“The structure of this license and option agreement allows us to complete the Phase II study with our existing resources before triggering additional payments to acquire the asset outright.”
Scots-Knight said AstraZeneca had generated a “substantial” clinical data package on AZD9668 which included extensive Phase II studies in several respiratory conditions that would inform the initial Phase II clinical study Mereo was planning for AATD.
“We believe that the neutrophil elastase inhibitor AZD9668 could provide a new innovative approach for the treatment of AATD, which affects approximately 100,000 patients in the US and 120,000 patients in Europe.
“As part of this agreement, we also welcome AstraZeneca as another large pharma shareholder in the company, alongside Novartis.”
Kumar Srinivasan, vice-president of scientific partnering and alliances at AstraZeneca, said the transaction reaffirmed AstraZeneca's commitment to patients by repositioning an asset into an orphan indication with a “high unmet” need.
“We will continue to divest or out-license deprioritized assets where we believe it will help accelerate the development of new medicines,” Srinivasan added.