Mestag will employ its reversing activated fibroblast technology (RAFT) platform, a proprietary platform built to model the pathogenic role of fibroblasts in human disease, to identify novel drug targets. Merck & Co. has the option to license one or more targets, up to a prespecified number, and will be responsible for the discovery, development and commercialization of resulting therapeutics, Mestag said.

“Mestag was founded on groundbreaking insights into fibroblast-immune biology, and as an early innovator in this area of research, we have built a robust pipeline of antibody programs and created a unique and productive target discovery platform,” said Susan Hill, CEO of Mestag.

Under the terms of the agreement, Mestag will provide Merck & Co. options to obtain exclusive licenses to develop and commercialize therapeutics directed against a prespecified number of potential targets identified under the collaboration. In return Mestag will receive an upfront payment and access fees and will be eligible to receive option fees as well as downstream payments with the potential to total $1.9 billion.

Marc Levesque, vice president of Immunology Discovery, MSD Research Laboratories, added, “The role of activated fibroblasts in directing immune activity offers exciting new therapeutic potential.