Lycera, Merck Enter Autoimmune Research Pact

Lycera Corp. and Merck have entered into an exclusive research collaboration to discover, develop and commercialize drug candidates to treat autoimmune diseases such as rheumatoid arthritis, psoriasis, inflammatory bowel disease and multiple sclerosis, with small molecules that target T-helper 17 (Th17) cells, key mediators of inflammation.

Lycera will collaborate with Merck, through an affiliate, on discovery efforts and preclinical development targeting the retinoic acid related orphan receptor (RORγt). Merck is responsible for clinical development and will have worldwide marketing and commercialization rights to any resulting products, while Lycera retains a profit share option in the U.S. Lycera will receive $12 million upfront, research funding, and is eligible to receive as much as $295 million in R&D and regulatory milestone payments, as well as royalties and sales milestones.

“We are delighted to be working with Merck, which brings industry leading expertise in drug discovery, development and commercialization to this collaboration,” said Gary D. Glick, Ph.D., Lycera founder and chief scientific officer. “This joint partnership is a significant validation of Lycera’s discovery capabilities and our Th17 program, and enables us to expand the scope of our research in this promising area to expedite our discovery efforts as well as our timeline to enter the clinic.”

“Autoimmune diseases continue to represent a significant unmet medical need globally,” said Don Nicholson, Ph.D., vice president and head of worldwide discovery, Respiratory and Immunology Franchise, Merck Research Laboratories. “Lycera has established a strong reputation for innovation in this area and we look forward to working together to advance this program.”

Th17 cells are characterized by the production of interleukin-17 (IL-17), a highly inflammatory cytokine that plays an important role in immune-mediated diseases, including psoriasis, rheumatoid arthritis, multiple sclerosis, inflammatory bowel disease (colitis) and asthma. Lycera has developed a program that targets Th17 cells and has identified potent and specific inhibitors of RORγt that reduce IL-17 production in primary cells and in vivo.