Mereo BioPharma and Sentynl Therapeutics Sign Option and Licence Agreement for Alvelestat
Wednesday, August 12, 2026
Mereo BioPharma Group and Sentynl Therapeutics, a wholly owned subsidiary of Zydus Lifesciences, have entered into an option and licence agreement covering the US commercial and global manufacturing rights to alvelestat for alpha-1 antitrypsin deficiency-associated lung disease (AATD-LD).
Alvelestat is a neutrophil elastase inhibitor being prepared for Phase III development. If approved, it could become the first oral treatment for AATD-LD, a rare and progressive genetic lung disease estimated to affect 50,000–80,000 people in the US.
Under the agreement, Sentynl has the exclusive option to obtain a licence to commercialise alvelestat in the US, while Mereo will retain commercial rights in other global markets. Sentynl will also receive global manufacturing rights for the treatment.
If Sentynl exercises the option, the agreement provides funding for the Phase III development programme, which could begin in early 2027. Mereo will lead the global Phase III study and regulatory activities until the study is completed. The companies will work together during the option period to advance manufacturing plans and refine the Phase III study design.
The partnership follows positive efficacy results from two Phase II studies, which support the planned late-stage development of alvelestat.
Mereo will receive a non-refundable option fee from Sentynl. If the option is exercised, Mereo will receive $40 million in upfront and research and development payments. The company could also receive up to $435 million in regulatory and commercial milestone payments, along with tiered royalties in the double-digit range on US net sales of alvelestat.
AATD is a genetic disorder that causes low levels of alpha-1 antitrypsin, a protein that helps protect the lungs from damage caused by enzymes released during inflammation. Severe deficiency can lead to pulmonary emphysema, a progressive and potentially life-threatening condition associated with breathlessness, chronic cough, sputum production and recurrent exacerbations.
People with AATD may also develop conditions such as asthma and bronchiectasis. The estimated US prevalence of AATD-LD associated with the Pi*ZZ variant is around 50,000–80,000 people.
The agreement expands Sentynl’s focus on rare diseases while supporting Mereo’s plans to advance alvelestat into Phase III development.
Source: globenewswire.com
