Merck & Co., operating as MSD outside the U.S. and Canada, has entered into a significant agreement with Mestag Therapeutics, a biotech company based in the UK. The deal, valued at up to $1.9 billion, aims to explore new drug targets for therapies addressing inflammatory diseases.
Mestag Therapeutics specializes in fibroblasts, connective tissue cells that play a crucial role in immune response regulation during chronic infections, inflammation, and cancer. The collaboration will leverage Mestag's Reversing Activated Fibroblast Technology (RAFT) platform to identify novel drug targets. Merck has the option to license these targets and will oversee the discovery, development, and commercialization of any resulting therapeutics.
“Mestag was founded on groundbreaking 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 Mestag CEO Susan Hill in an Oct. 8 statement.
“We are acutely aware of the significant unmet needs faced on a daily basis by patients suffering from inflammatory diseases,” Hill added. “We are thrilled to collaborate with MSD, together driving continued innovation for the benefit of patients.”
Marc Levesque from MSD Research Laboratories commented on the potential of activated fibroblasts in therapeutic developments: “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,” Levesque stated.
Founded in 2020 in Cambridge, England, Mestag focuses on developing medicines for inflammatory disease and cancer. Its founding investigators include experts from prestigious institutions such as the University of Oxford and Harvard Medical School. The company is backed by investors like SV Health Investors and Johnson & Johnson Innovation – JJDC, Inc.
