By: IPP Bureau
Last updated : August 12, 2026 9:46 am
Zydus Lifesciences subsidiary Sentynl Therapeutics will have an exclusive option to acquire a licence to commercialise the drug in the United States, while Mereo BioPharma will retain commercial rights in the rest of the world
Sentynl Therapeutics, the U.S.-based biopharmaceutical subsidiary of Zydus Lifesciences, and clinical-stage biopharmaceutical company Mereo BioPharma Group have entered into an option and license agreement covering the U.S. commercial and global manufacturing rights to alvelestat for alpha-1 antitrypsin deficiency-associated lung disease (AATD-LD).
Under the agreement, Sentynl will have the exclusive option to acquire a licence to commercialise alvelestat for AATD-LD in the United States, while Mereo will retain commercial rights in the rest of the world. Sentynl will also receive global manufacturing rights for the therapy.
Alvelestat is a neutrophil elastase inhibitor being prepared for Phase 3 development and, if approved, could become the first oral treatment for AATD-LD, a rare and progressive genetic lung disease estimated to affect 50,000–80,000 people in the U.S.
If Sentynl exercises the option, the agreement will provide funding for the Phase 3 development programme, which could begin in early 2027. Mereo will lead the global Phase 3 study and regulatory interactions until completion, while the two companies will collaborate during the option period on manufacturing and refining the Phase 3 study design.
“This partnership marks a pivotal moment for Sentynl’s rare disease strategy. Mereo’s alvelestat is a highly promising, differentiated candidate that meaningfully expands our portfolio and has the potential to address an area of significant unmet need,” said Dr. Sharvil P. Patel, Managing Director, Zydus Lifesciences Limited. “AATD-LD has a profound impact on patients’ lives. If approved, alvelestat has the potential to be a meaningful new option that could help their quality of life.”
Matt Heck, Chief Executive Officer, Sentynl Therapeutics, said the partnership would expand the company’s focus within the rare disease segment. “For patients with AATD-LD, the current standard of care is demanding, often relying on generalized therapies or frequent intravenous treatments. We see a clear opportunity to improve upon that with alvelestat.”
He added, “Mereo has built a strong foundation for this asset, making them an ideal partner as we collaborate during the option period to prepare for the next phase of development.”
Denise Scots-Knight, Chief Executive Officer, Mereo BioPharma, said, “We are very pleased to have the opportunity to partner with Sentynl to advance alvelestat for patients with AATD-LD. We have been preparing alvelestat for a global Phase 3 study, backed by positive efficacy data from two Phase 2 studies.”