Tyrolean Biotech Company Cyprumed Closes 493 Million Dollar Deal with American MSD
The Innsbruck-based biotechnology company Cyprumed GmbH is making international headlines with a multi-million dollar license deal: Together with the U.S. pharmaceutical group MSD (Merck & Co., Inc.), the company has signed an agreement worth up to 493 million US dollars. The aim is to develop innovative tablet formulations for peptide drugs - a potential game changer in modern drug therapies.
Merck & Co., Inc. is a US pharmaceutical company based in Rahway, New Jersey, which was originally part of the German Merck Group and operates outside the USA and Canada under the name Merck Sharp & Dohme (MSD). / Picture: © Wikimedia Commons / Coolcaesar / CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/deed.en)
As both companies announced on Tuesday, the agreement includes a non-exclusive license to Cyprumed's technology platform for the oral administration of peptides. This should make it possible in the future to take previously injectable peptide drugs—for example, for the treatment of diabetes, obesity, or cancer—in the form of tablets.
“Our platform for oral peptide administration represents an important step towards more patient-friendly forms of therapy,” says Florian Föger, CEO of Cyprumed. “The fact that MSD is cooperating with us is a tremendous endorsement of our technology.”
Milestone for the Austrian biotech scene
For Cyprumed, this is the biggest commercial breakthrough to date. Under the terms of the agreement, the company will receive up to 493 million dollars, consisting of upfront payments, development and approval milestones as well as sales-based payments. In addition, MSD has the option of acquiring exclusive licensing rights for certain molecular targets - which could generate additional revenue for the Tyrolean company.
The pharmaceutical giant MSD, which is one of the world's largest pharmaceutical manufacturers and employs around 950 people in Austria alone, will be responsible for the research, development, production, and marketing of products based on Cyprumed's technology as part of the cooperation.
“We look forward to working with the Cyprumed team and leveraging their platform to further advance our developments in peptide therapeutics,” said Allen C. Templeton, Vice President of Pharmaceutical Sciences at MSD Research Laboratories.
Peptide therapies: High efficacy, complicated administration so far
Peptides are regarded as promising active ingredients in modern medicine. Their advantage: they can have a highly specific effect on the body's own receptors - with comparatively few side effects. The disadvantage so far: as they are rapidly broken down in the digestive tract, they usually have to be injected.
This is where Cyprumed's technology comes in. The company uses innovative tablet formulations that effectively transport the peptides through the gastrointestinal tract - using already approved pharmaceutical excipients. This not only makes it more convenient for patients to take but also simplifies the production process and regulatory approval.
Strong partners and ambitious plans
Cyprumed, founded in 2018, is based in Innsbruck and has been working for years on technologies for the oral administration of macrocyclic peptides and mini-proteins. In addition to MSD, previous cooperation partners include Bayer, Boehringer Ingelheim and Ferring.
The cooperation with MSD that has now become known could finally catapult the company into the premier league of the biotech industry. Industry experts see this as a strong signal for Austria as a research location. The fact that a domestic company is cooperating with one of the world's leading pharmaceutical groups shows that innovation does not only have to take place in Boston or Basel, some experts from the industry have commented. For example, Swiss giant Novartis has invested in Tyrol, as reported by Vindobona.org.
The future of medication: the tablet instead of the syringe
If the technology proves itself in practice, it could revolutionize the administration of many medications. Chronically ill people in particular, who are dependent on regular injections, would benefit enormously from an oral alternative - both in terms of quality of life and adherence to treatment.
“Our goal is to make peptide therapies suitable for mass use and patient-friendly,” says Föger. The potential of the deal with MSD is “just the tip of the iceberg”.