Mestag Therapeutics lines up potential $1.9bn haul from MSD
Mestag will employ its Reversing Activated Fibroblast Technology (RAFT) platform, a proprietary platform purposely built to model the pathogenic role of fibroblasts in human disease, to identify novel drug targets.
MSD has the option to license one or more targets, up to a prespecified number and will be responsible for the discovery, development and commercialisation of resulting therapeutics.
In return Mestag will receive an upfront payment and access fees and will be eligible to receive option fees as well as downstream payments with the potential to total $1.9 billion.
A fibroblast is a type of cell that contributes to the formation of connective tissue, a fibrous cellular material that supports and connects other tissues or organs in the body. Fibroblasts secrete collagen proteins that help maintain the structural framework of tissues.
Mestag CEO, Susan Hill said: “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.
“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 MSD, together driving continued innovation for the benefit of patients.”
Marc Levesque, Vice President of Immunology Discovery, MSD Research Laboratories, added: “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.”
Mestag’s pipeline includes the bispecific antibody MST-0300, which leverages a new understanding of tertiary lymphoid structures (TLS) in solid tumours and their role in driving improved patient outcomes; the M402 program, targeting a stromal checkpoint to dampen down the activation of specific immune cell subsets in inflammatory disease; and earlier programs in discovery stage.
Separately, the company is also identifying novel targets for future therapies through the application of its proprietary RAFT Platform.
In 2024, it established a license and research collaboration with MSD to identify novel targets for inflammatory diseases.
Its founding investigators comprise global experts in inflammatory disease, cancer, computational biology and fibroblast biology from the University of Oxford, Brigham & Women’s Hospital, Harvard Medical School and Cold Spring Harbor Laboratory.
The business is supported by leading life science investors SV Health Investors, Johnson & Johnson Innovation – JJDC, Inc., Forbion, GV (formerly Google Ventures) and Northpond Ventures.