Mereo, Sentynl sign option/license deal for alvelestat in AATD-LD; up to $40M upfront, $435M milestones

Mereo BioPharma Group plc

Non-refundable option fee; on exercise $40M upfront/R&D, up to $435M milestones, double-digit tiered royalties on US sales.
Sentynl gets US commercial and global manufacturing rights; Mereo keeps rest-of-world rights and leads global Phase 3.
Alvelestat is a neutrophil elastase inhibitor; potential first oral treatment for AATD-LD affecting ~50k-80k US patients.
Phase 3 could start early 2027; backed by positive efficacy data from two Phase 2 studies.
Agreement dated Aug 11, 2026; parties to collaborate on manufacturing and Phase 3 design during option period.

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