Zydus Subsidiary Sentynl, Mereo BioPharma Ink Deal for Alvelestat

Zydus Lifesciences' subsidiary, Sentynl Therapeutics, has entered into an option and license agreement with Mereo BioPharma for alvelestat, a potential first-in-class oral treatment for Alpha-1 Antitrypsin Deficiency-Associated Lung Disease (AATD-LD). Under the agreement, Sentynl gains the exclusive right to commercialize alvelestat in the U.S. upon option exercise, with Mereo leading global development and retaining rest-of-world rights. Mereo will receive an upfront option fee and is eligible for up to $40 million in upfront and R&D payments until NDA filing, plus double-digit tiered royalties on U.S. sales. The companies will collaborate to refine the Phase 3 study design during the option period. Alvelestat is a neutrophil elastase inhibitor targeting a rare genetic respiratory disease affecting an estimated 50,000-80,000 individuals in the U.S. This deal significantly expands Sentynl's rare disease portfolio.