Our Life Sciences team has advised Mereo BioPharma Group plc (Mereo) on its option and licence agreement with Sentynl Therapeutics, Inc. for the US commercial and global manufacturing rights to alvelestat for the treatment of Alpha-1 Antitrypsin Deficiency-Associated Lung Disease (AATD-LD).
The deal sees Sentynl Therapeutics, Inc., a wholly-owned subsidiary of Zydus Lifesciences Limited, granted an exclusive option to acquire a license to commercialise alvelestat for AATD-LD in the US and global rights to manufacture alvelestat for AATD-LD. Mereo will retain commercial rights in the rest of the world and lead on the global Phase 3 development program. If approved, alvelestat could become the first oral treatment for AATD-LD, a rare and progressive genetic lung disease estimated to affect 50,000-80,000 people in the US.
Under the terms of the agreement, Mereo will receive a non-refundable option fee and, upon exercise of the option, would receive US$40 million in upfront and R&D payments. The company could also be eligible to receive up to US$435 million in potential regulatory and commercial milestone payments, in addition to double-digit tiered royalties on US net sales of alvelestat.
The Gowling WLG team was led by Of Counsel Patrick Duxbury, together with Legal Director Christopher Freeth. They worked closely with Charles Sermon, Mereo's General Counsel and Business Development and wider team members including Nicole Reichman, Head of Legal, and Harry Freeman, Senior Manager of Business and Corporate Development.
Patrick Duxbury said: "This transaction is significant for Mereo and reflects the importance of strategic partnering within the life sciences sector. Working as one integrated team, we supported Mereo in navigating a complex deal and delivering an agreement tailored to its long-term business objectives."
Mereo BioPharma is a UK-headquartered biopharmaceutical company focused on the development of innovative therapeutics for rare diseases. Formed in 2015, it has selectively acquired and developed product candidates for rare diseases with a portfolio of late-stage clinical product candidates for the treatment of several types of bone disease, as well as the lung disease AATD-LD.
Gowling WLG's Life Sciences team combines technical understanding with extensive legal expertise to help clients anticipate challenges, manage risk and unlock opportunities. Many of the team hold scientific degrees and bring first-hand industry experience to support clients on a full range of legal issues – providing integrated, specialist and practical legal advice to meet business goals. Recognised for its "deep expertise" and "solution-oriented, proactive approach" in Chambers UK, the team is consistently ranked among the top in the sector.