Merck Serono spins out sixth company - Calypso Biotech - to focus on gastrointestinal immunological disorders

German drug major Merck KGaA’s (MRK: DE) subsidiary Merck Serono yesterday (March 4) announced the creation of Calypso Biotech, the sixth spin-off company resulting from its Entrepreneur Partnership Program (EPP).

Calypso Biotech was formed around Merck Serono's R&D portfolio in the field of inflammatory bowel diseases, targeting selected niche indications with high unmet medical needs. Merck Serono will invest 2.5 million euros ($3.2 million) as seed funding. Merck Serono Ventures will manage the investment and will be represented on the company's board of directors.

"We are pleased that Calypso Biotech will continue promising programs in inflammatory bowel diseases, while Merck Serono focuses its R&D efforts in other therapeutic areas," said Bernhard Kirschbaum, executive vice president and head of Global Research and Early Development at Merck Serono, adding: "Calypso Biotech has the portfolio, the expertise and the scientific network to build a unique translational medicine approach and to become a partner of choice in this therapeutic area."