Zealand Pharma Acquires Encycle Therapeutics to Advance Oral Macrocyclic Peptide Therapy ET3764 for Inflammatory Bowel Disease

On October 23, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Danish biopharmaceutical company Zealand Pharma announced the acquisition of biotechnology company Encycle Therapeutics (Encycle) and its lead candidate drug ET3764 for $80 million.

Under the terms of the agreement, Zealand Pharma will acquire all intellectual property rights and issued shares of Encycle Therapeutics, including the rights to develop and commercialize potential assets. This acquisition strengthens Zealand Pharma’s leadership in peptide drug development and the treatment of gastrointestinal diseases.

ET3764 is an oral inhibitor targeting integrin α4β7, indicated for the treatment of inflammatory bowel disease (IBD). Integrins, also known as integrin proteins, are a class of heterophilic cell adhesion molecules widely expressed on the surface of vertebrate cells. These proteins mediate mutual recognition and adhesion between cells, as well as between cells and the extracellular matrix. Integrin α4β7 is a key adhesion molecule that mediates the migration of immune cells to gut-associated lymphoid tissues, representing an important therapeutic target for IBD.

Encycle Therapeutics, founded in 2012 and headquartered in Toronto, Canada, is a private biotechnology company. The company possesses an advanced biotechnology platform capable of rapidly synthesizing novel macrocyclic peptide therapeutics. Macrocyclic peptides exhibit unique physicochemical properties and hold significant potential for development as next-generation drugs, thereby attracting widespread attention within the pharmaceutical industry.

Encycle Therapeutics has collaborated with several pharmaceutical companies to develop a macrocyclic peptide screening platform, laying the foundation for peptide drug research and development. Furthermore, the company is developing oral biologics targeting Smad ubiquitination regulatory factor 2 (Smurf2). Smurf2 is an E3 ubiquitin ligase, and studies have shown that it plays a role in the onset and progression of pulmonary fibrosis. It selectively acts on Smad proteins to modulate TGF-β1 signaling in pulmonary fibrosis, thereby regulating disease progression.

Zealand Pharma, founded in 1998 and headquartered in Copenhagen, Denmark, is a leading biotechnology and pharmaceutical company. The company is dedicated to developing peptide therapies and related protein-based drugs to meet patients’ clinical needs. Leveraging its specialized expertise in drug research and development, Zealand Pharma collaborates with global leading pharmaceutical companies such as Sanofi, Helsinn, and Boehringer Ingelheim. The company was listed on the NASDAQ Stock Exchange in the United States in August 2017, under the ticker symbol ZEAL.

Emmanuel Dulac, President and Chief Executive Officer of Zealand Pharma, stated, “Encycle Therapeutics has extensive experience in the development of peptide-based therapeutics. We are delighted to add ET3764 to Zealand Pharma’s peptide portfolio. We believe this transaction will help Zealand Pharma consolidate its leading position in the field of peptide drug development.”

Dr. Jeffrey Coull, President and Chief Executive Officer of Encycle Therapeutics, stated, “Encycle Therapeutics has been dedicated to the research of macrocyclic peptides. Our R&D team has confirmed that this class of compounds holds significant potential in modulating protein-protein interactions, an area where small-molecule modulators and biologics face considerable challenges. We are delighted to join Zealand Pharma to help more patients regain their health.”

(Compiled by Xu Xiaoxue)