Pharma BD Deal Intelligence
Sentynl funds alvelestat's Phase 3 in exchange for US rights; Mereo keeps the rest of the world
Full analysis, sources & comparables →Mereo BioPharma granted Sentynl Therapeutics an option and license covering US commercial rights and global manufacturing rights to alvelestat, an oral neutrophil elastase inhibitor, for alpha-1 antitrypsin deficiency-associated lung disease. Mereo receives a non-refundable option fee and, upon option exercise, is eligible for USD 40 million in upfront and R&D payments, up to USD 435 million in potential milestones, and tiered double-digit royalties on US sales. Option exercise also funds the alvelestat Phase 3 program, which could start in early 2027. Alvelestat would, if approved, be the first oral treatment for AATD-LD, a rare progressive genetic lung disease affecting an estimated 50,000-80,000 people in the United States. Mereo retains commercial rights in the rest of the world.
Alpha-1 antitrypsin deficiency-associated lung disease is a rare, progressive inherited disorder in which deficient alpha-1 antitrypsin fails to restrain neutrophil elastase, driving emphysema and lung-function decline. An estimated 50,000-80,000 individuals are affected in the United States. Current management relies on intravenous augmentation therapy; there is no approved oral treatment.
The option-and-licence structure lets Mereo de-risk a Phase 3 it would otherwise have to fund itself, while Sentynl acquires US commercial rights plus global manufacturing to a potential first-in-class oral therapy. Value is heavily back-loaded: only a non-refundable option fee is committed until Sentynl exercises.
Sentynl funds alvelestat's Phase 3 in exchange for US rights; Mereo keeps the rest of the world
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Sentynl Therapeutics, Inc. / Mereo BioPharma Group plc (this deal) | 2026 | $475M | 66 |
| Sentynl Therapeutics, Inc. / PRG S&T | 2026 | — | — |
| Sentynl Therapeutics, Inc. / BridgeBio Pharma, Inc. | 2022 | — | — |
| Sentynl Therapeutics, Inc. / Cyprium Therapeutics, Inc. | 2021 | — | — |
| Arcturus Therapeutics, Inc. / CSL Seqirus (CSL Limited) | 2026 | $28M | 100 |
| Genentech, Inc. (Roche Group) / Duality Biologics (Suzhou) Co. Ltd. | 2026 | $1.0B | 100 |
| Genentech, Inc. (Roche Group) / Hanmi Pharmaceutical Co. Ltd. | 2026 | $2.3B | 100 |