Zealand Pharma has agreed to acquire Encycle Therapeutics to enhance its pipeline in peptide therapeutics, focusing on the novel inflammatory bowel disease drug ET3764.

Information on the Target

Zealand Pharma, a Danish biotechnology company, has entered into an agreement to acquire all outstanding shares and intellectual property of Encycle Therapeutics, a Canadian firm specializing in peptide synthesis. Encycle Therapeutics is renowned for its unique technology that enables the production of macrocyclic peptides possessing drug-like properties. The main asset in Encycle's pipeline is ET3764, a novel oral peptide drug specifically designed to target integrin alpha-4-beta-7, a key player in the pathology of inflammatory bowel disease (IBD).

ET3764's mechanism of action has been substantiated by the existing alpha-4-beta-7 integrin inhibitor, vedolizumab, highlighting its potential impact on IBD treatment. The acquisition accords Zealand full rights for the development and commercialization of ET3764, although it does not include any associated infrastructure or personnel costs.

Industry Overview

The biotechnology industry in Canada has been experiencing significant growth, fueled by heightened investment in research and development and a robust pipeline of biologic drugs. In recent years, Canada has established itself as a leading destination for biotech firms, thanks in part