Calypso to be acquired by Novartis

Swiss pharma giant Novartis (NOVN: VX) has entered an agreement to acquire Dutch firm Calypso Biotech, a developer of Interleukin15 (IL-15) targeted therapies.

Novartis will pay Calypso’s shareholders an upfront payment of $250 million upon closing, with a further of up to $175 million based on the achievement of certain predetermined milestones.

Calypso, a spin-out from Germany’s Merck KGaA (MRK: DE) in 20213, is focused on the research and development of monoclonal antibodies for an array of autoimmune indications, with an expertise in IL 15 biology. IL-15 is a broad, untapped immune axis that controls barrier function and downstream immune cascades in many chronic autoimmune diseases. Calypso’s lead product candidate, CALY-002, is a potential best-in-class therapeutic antibody that binds to and neutralizes Interleukin-15.