Merck & Co. and Mestag Therapeutics Collaborate on $1.9 Billion Fibroblast Therapy Deal for Inflammatory Diseases

Partnership:
Merck & Co. (MSD) and Mestag Therapeutics have entered into a collaboration worth up to $1.9 billion to identify new drug targets for inflammatory diseases using Mestag's RAFT platform.

RAFT Platform:
Mestag's Reversing Activated Fibroblast Technology (RAFT) platform is designed to model the pathogenic role of fibroblasts in human disease, focusing on fibroblast-immune interactions.

Deal Structure:
Merck has the option to license one or more targets identified through the collaboration, up to a prespecified number, and will handle the discovery, development, and commercialization of any resulting therapies.

Financial Terms:
Mestag will receive an upfront payment, access fees, and potential additional payments based on milestones, totaling up to $1.9 billion.

Innovative Approach:
The collaboration leverages Mestag's expertise in activated fibroblast biology to identify novel therapeutic targets for inflammatory diseases, addressing significant unmet patient needs.