Mereo BioPharma Group (NASDAQ:MREO) entered a collaboration accord and license pact with Ultragenyx Pharmaceutical Inc (NASDAQ:RARE) for the development of setrusumab. As per the terms of the pact, Ultragenyx will develop setrusumab in adults and pediatric patients.
Ultragenyx received an exclusive license from Mereo for the development and commercialization of this innovative drug both in the United States and the rest of the world. However, Mereo holds the commercial rights to Setrusumab in the EU. Both Mereo and Ultragenyx are responsible for the marketing of the drug in their respective regions.
Mereo will get a payment of $50 million from Ultragenyx. The company will also receive a payment of up to $254 million from Ultragenyx on achieving certain milestones.
Enhanced bone strength
Setrusumab demonstrated the ability to boost bone density and production and strengthen the bones in animal models of osteogenesis imperfect (OI).
A promising drug to prevent bone fractures
According to the data collected from phase 2b clinical trial of Setrusumab by Mereo, a noticeable change is observed in bone density and formation. It is a promising drug to improve bone strength and prevent fragility of the bones in adults and children.
CEO of Ultragenyx, Emil D. Kakkis said the new drug is a great addition to its product line. It allows the company to embrace its expertise in curing metabolic bone diseases using Crysvita. Setrusumab is an ideal treatment option for people with OI.
CEO of Mereo, Dr. Denise Scots-Knight said OI is a devastating and rare genetic disease. It does not have any approved treatments. Denise further said the company is proud to enter a pact with Ultragenyx to develop Setrusumab as the first approved treatment for both adults and children with OI.
Aids the formation of new bones
Around 60,000 patients across the developed nations worldwide are affected by osteogenesis imperfect. The development of Setrusumab helps to address genetic defects and their consequences like bone brittleness and reduced bone mass. It acts by inhibiting sclerostin and promotes collagen production and aids the formation of new bones.
The drug also prevents excessive resorption of bones by inhibiting sclerostin. Therefore, it promotes bone density.