Image: © Stavros/Stock.adobe.com
The deal will give Novartis full rights to an antibody Calypso is working on to treat various autoimmune diseases.
Calypso Biotech, a Dutch company developing treatments for autoimmune diseases, has entered an agreement to be acquired by pharma giant Novartis.
The deal will give Calypso shareholders an upfront payment of $250m and they will also be eligible to receive an extra $175m, depending on the achievement of certain predetermined milestones.
The start-up is working on novel treatments for autoimmune diseases such as coeliac disease. Its flagship product – CALY-002 – is a humanised monoclonal antibody that suppresses a signalling protein named Interleukin-15. This antibody is currently being trialled in patients with coeliac disease and eosinophilic oesophagitis – an allergic condition that happens in the oesophagus.
The acquisition will give Novartis full rights to CALY-002. The pharma giant intends to further explore this treatment across a wide variety of autoimmune indications with high unmet medical need.
“We are excited for this transaction with Novartis, a company with relentless commitment to the development of innovative therapies for autoimmune conditions,” said Calypso CEO and co-founder Alain Vicari. “As part of the Novartis portfolio, CALY-002 is in the best position to be developed effectively, so that it can promptly address unmet medical needs in multiple indications.”
Calypso Biotech is a spin-out from Merck and was launched in 2013. In 2021, Fountain Healthcare Partners, the Irish life sciences venture capital firm, was part of an €8m extension to a 2019 Series A funding round for the company, which brought the total raised in the round to $28m.
“This deal is an excellent outcome for Novartis and Calypso Biotech, as well as for Fountain Healthcare Partners, our investors and most importantly, patients with autoimmune diseases who could potentiality benefit from this therapy,” said Fountain Healthcare partner Ena Prosser.
Recently, DeepMind spin-out Isomorphic Labs signed deals with Novartis and Eli Lilly to discover new drugs, which could lead to billions in profit for the company.
10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.
