Novartis to acquire Calypso Biotech for $250M upfront, up to $175M in milestones

Calypso Biotech BV, a spin-out from Merck (MRK) that identifies itself as “a leader in the development of Interleukin15 targeted therapies,” announced that it has entered into an agreement to be acquired by Novartis AG (NVS). Calypso’s shareholders will receive an upfront payment of $250M upon closing and are eligible to receive development milestones of up to $175M based on the achievement of certain predetermined milestones. Calypso is focused on the research and development of monoclonal antibodies for an array of autoimmune indications, with an expertise in IL-15 biology. “IL-15 is a broad, untapped immune axis that controls barrier function and downstream immune cascades in many chronic autoimmune diseases. Calypso’s lead product candidate, CALY-002, is a potential best-in-class therapeutic antibody that binds to and neutralizes Interleukin-15,” the company stated. “The acquisition gives Novartis full rights to CALY-002. Novartis intends to further explore CALY-002 across a wide variety of autoimmune indications with high unmet medical need. CALY-002 is currently evaluated in a Phase 1b trial in patients with Celiac Disease and Eosinophilic Esophagitis,” the company added.