Lycera has signed a deal with Pharmaceutical giant Merck that is worth $12 million to the Ann Arbor-based start-up now and potentially another $295 million plus over the length of the deal.
Lycera, a bio-pharmaceutical spin-out from the University of Michigan, is developing small molecule drugs for treating autoimmune diseases. The deal with Merck is for an exclusive research collaboration to develop small molecules that target T-helper 17 cells, key mediators of inflammation. The idea is to develop drug candidates that rheumatoid arthritis, psoriasis, inflammatory bowel disease, and multiple sclerosis.
"This joint partnership is a significant validation of Lycera's discovery capabilities and (T-helper 17 cell) program, and enables the company to expand the scope of its research in this promising area to expedite discovery efforts as well as the timeline to enter the clinic," Michele Rozen, a spokesperson for Lycera, writes in an email.
The 4-year-old company has 18 employees and "is planning to add several positions over the next couple of years," Rozen writes. That's up from 15 people last May.
Lycera has also been prolifically raising seed capital over the last few years. Last year it landed $11 million in its latest funding round.
Source: Michele Rozen, a spokesperson for Lycera
Writer: Jon Zemke
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