Merck is re-upping with Lycera, forming a second strategic partnership with the Ann Arbor-based biopharmaceutical startup that could bring the total investment between the two firms of nearly $600 million.
Lycera is working to develop new autoimmune disease drugs that will help treat things like rheumatoid arthritis. It landed its
first strategic partnership with Merck (worth $295 million in research investment) in 2011, which focused on therapies targeting the retinoic acid related orphan receptor.
The second partnership, announced this week, is distinct from the first partnership deal because the firms will spend up to $300 million to discover, develop and commercialize small-molecule therapies directed to selected novel targets being investigated for the treatment of a broad range of immune-mediated disorders.
"The validates Lycera as the partner of choice," says Kathleen Metters, president & CEO of
Lycera. "It was built on a very successful first collaboration (between Lycera and Merck)."
Lycera is based in the North Campus Research Complex at the University of Michigan (formerly Pfizer's Ann Arbor campus) where it has a staff of 22 employees and a handful of interns. It has hired three people over the last year, including a chemistry project manager. These hires are strategic and often represent people relocating to Ann Arbor. Metters expects to continue making those sorts of strategic, high-end hires throughout this year.
Lycera is also looking to continue its research into its proprietary products, which are independent from its partnerships with Merck, and develop new technologies in the autoimmune disease sector.
"This is a very important area to continue investment in," Metters says.
Source: Kathleen Metters, president & CEO of Lycera
Writer: Jon Zemke
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