Calypso Biotech, a European immunotherapy biotech firm focused on the research and development of new biologics, announced an agreement to be bought by Novartis. Calypso’s stockholders will get a $250 million upfront payment as well as development milestone payments of up to $175 million if certain milestones are met.
Calypso, a Merck spin-out, specializes in the research and development of monoclonal antibodies for a variety of autoimmune diseases, with a focus on IL-15 biology. Calypso describes IL-15 as a vast, unexplored immunological axis that regulates barrier function and downstream immune cascades in many chronic autoimmune disorders. Calypso’s leading product candidate. CALY-002 is a potential best-in-class therapeutic antibody that binds and neutralizes Interleukin-15.
This acquisition will grant Novartis complete rights to CALY-002, which it plans to investigate further across a wide range of autoimmune diseases with unmet medical need. CALY-002 is now being studied in a Phase Ib trial for celiac disease and eosinophilic esophagitis.
“We are thrilled about this transaction with Novartis, a firm dedicated to the discovery of breakthrough medicines for autoimmune diseases. “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,” said Alain Vicari, Calypso’s CEO and co-founder.
