AstraZeneca is Considering Buying Its Partner Mereo BioPharma

According to the British "Times" report, there are rumors that AstraZeneca is considering the acquisition of its London-based partner Mereo BioPharma. If the bid is successful, AstraZeneca is expected to face competition from Mereo's other partners, including Novartis, OncXerna and Ultragenyx.

AstraZeneca and Mereo entered into a partnership in 2017 when AstraZeneca sold its drug candidate AZD9668 to treat alpha-1 antitrypsin deficiency as it scaled back its pipeline. As part of the agreement, Mereo paid AstraZeneca $3 million upfront and $2 million in stock.

In the five years since, AstraZeneca has grown into an industry giant with its impressive portfolio of cancer and heart disease drugs and its COVID-19 vaccine. As bank funding increases, AstraZeneca may be looking to re-acquire AZD9668, now named alvelestat, which showed encouraging Phase II efficacy and safety results, according to top data Mereo released last month.

AstraZeneca may also have been eyeing etigilimab, Mereo's lead oncology candidate, which works by blocking the immune receptor TIGIT. Etigilimab is currently undergoing a Phase Ib/II basket study evaluating its efficacy and safety in combination with anti-PD-1 nivolumab. This puts etigilimab in roughly the same space as many of AstraZeneca's TIGIT inhibitors.

If AstraZeneca's plans come true, Mereo could follow in the footsteps of Alexion Pharmaceuticals. In mid-2021, AstraZeneca acquired Alexion in a push to expand its market share. At present, Alexion has formed a dedicated team for AstraZeneca to develop rare disease treatments.